Baroness Morgan of Drefelin is to replace Lord Triesman as Minister for Students.
The 46-year-old, one of the UK's youngest peers and former chief executive of the charity Breakthrough Breast Cancer, this week took on Lord Triesman's portfolio following his departure, just seven months into the role, to become the first independent chairman of the Football Association.
Lady Morgan, a government loyalist, has been a whip in the Lords since January 2007.
She is active on health issues, and she has also spoken in the Lords on the role of education in tackling social exclusion.
When she started as chief executive of Breakthrough Breast Cancer in the 1990s, the charity had only six members of staff.
At the time of her departure nine years later, it had 100 staff and 100 scientists.
Among other charities she has worked for are Shelter and the National Asthma Campaign. She is also a former president of the University of London's student union.
Lady Morgan was made a life peer in 2004, in the same year her predecessor, Lord Triesman, entered the House of Lords.