The Prime Minister is set to offer Boris Johnson a new role linked to Brexit as she launches her 2018 domestic policy.
Mrs May’s reshuffle in January could aim to get younger MPs into the cabinet.
The ministers Patrick McLoughlin, Justine Greening, Greg Clark, Chris Grayling and Andrea Leadsom could lose their jobs in the reshuffle.
The revelations regarding the upcoming reshuffle are according to The Sunday Times.
The Tory Chairman Patrick McLoughlin was widely criticised for the Tory’s losing a majority in the election in June.
MPs set to be promoted to the cabinet include Brandon Lewis, Dominic Raab and Damian Hinds.
The Prime Minister is also likely to promote female politicians and promising MPs who were elected in 2015.
Health Secretary, Jeremy Hunt, is expected to take over Damian Green’s position in the cabinet office, after he was forced to leave shortly before Christmas.
The PM lost Mr Green and former defence secretary Sir Michael Fallon over claims of inappropriate behaviour as sex pest allegations engulfed Westminster.
In her new year message, Theresa May said that Brexit is not the limit of her ambitions.
She also spoke about building more homes and protecting the environment.
The message said: “The real test is not whether challenges come; it’s how you face them.
“Whether you allow a task to overcome you, or tackle it head on with purpose and resolve.”
Meanwhile Labour leader Jeremy Corbyn used his New Year message to claim his party was “a Government in waiting”.
He said the 2017 general election in which Mrs May lost her majority showed “the Establishment’s secret is out: they’re not as strong as they appear” and have “no idea how to fix their broken system or upgrade our stagnant economy”.
The 1922 committee of backbench Tory MPs have been pushing for a reshuffle for months.
Chancellor Philip Hammond is expected to keep his role after a successful Budget in November.