The 45-year-old MP for South West Surrey (pictured top) replaces Andrew Lansley, who has been demoted to Commons Leader, and will manage a budget of more than £100 billion ($158 billion/€126 billion).

It also marks a surprising turn of events for Hunt who appeared on the verge of being axed and cast out in the political wilderness earlier this year following allegations of secret deals involving News Corporation.

Revelations surfaced in April during the Leveson Inquiry that Hunt's Department for Culture, Media and Sport (DCMS) office was colluding with Rupert Murdoch's company to ensure it was successful in its bid to take over BSkyB.

It had cast a huge question over whether Hunt would survive in his role as Secretary of State for Culture, Olympics, Media and Sport until the start of London 2012.

But, thanks to public backing from Cameron, he not only survived but has prospered thanks to the stunning success of the Olympics and Paralympics, said to be the key reason behind his promotion.

Maria Miller, arriving at Downing Street , will have Government responsibility for ensuring London 2012 creates a successful legacy

"I'm incredibly honoured," said Hunt outside Downing Street today.

"It is a huge task and the biggest privilege of my life."

Hunt is replaced at the DCMS by Maria Miller, whose full title is Secretary of State for Culture, Media and Sport and Minister for Women and Equality, the Olympics part having been dropped with London 2012 due to finish on Sunday (September 9) with the Closing Ceremony of the Paralympics.

In her new role the 48-year-old MP for Basingstoke will take the lead on a series of issues, chiefly those concerning the legacy of the London 2012 Olympic and Paralympic Games.

She was previously Parliamentary Under-Secretary of State and Minister for Disabled People at the Department for Work and Pensions.

Her appointment marks a significant promotion for a politician who had not been previously marked out as a potential successor to Hunt.

Miller attended the Paralympic Games with her family last night, apparently unaware she would today be the highest-ranking Government Minister directly responsible for the Games.

"I am delighted to have been appointed as the Culture Secretary and am very much looking forward to tackling the many challenges the role will bring," said Miller.

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