Housing Minister Eoghan Murphy will not be either a senior or junior minister if a new government is formed tomorrow, theunderstands.
Mr Murphy went to Mr Varadkar long before a government looked like being formed and said he was ready to step back from ministerial duties.
Several Fine Gael party sources have insisted there has been no falling out between the two men but that Mr Murphy is keen to step back from ministerial politics.
It has been speculated that Mr Murphy will have some enhanced party role but nothing has yet been finalised.
Mr Murphy has endured a “difficult” three years in Cabinet as Housing Minister and became a target of left-wing parties in the Dáil. He was the subject of a motion of no confidence last December.
Despite the criticism around high homeless figures and the failure to make inroads on the housing crisis, the Dublin Bay South TD remains popular within his own party and remains close to Mr Varadkar.
With just six Cabinet seats at his disposal, the outgoing Taoiseach’s options are severely limited.
Expected to remain at Cabinet are Simon Coveney in Foreign Affairs, Paschal Donohoe in Finance, Heather Humphreys who is tipped to become Agriculture minister, Simon Harris who will leave health and could replace Regina Doherty as Social Protection Minister. Among those tipped to be elevated into Cabinet are Helen McEntee and Hildegarde Naughten.