Speculation concerning a cabinet reshuffle was rife following Yongyuth Wichadit's resignation from the posts of deputy prime minister and interior minister after the National Anti-Corruption Commission found him guilty last week of malfeasance in the Alpine land case while he was a deputy permanent secretary for the Interior Ministry in 2002.
The prime minister discussed the matter upon returning to Thailand from New York, where she attended the United Nations General Assembly last week.
"The government wants time to work for the people, so there will be no cabinet reshuffle for the moment," she told reporters at Suvarnabhumi airport.
She said that the deputy interior minister can handle the ministry's work for the time being.
Ms Yingluck praised Mr Yongyuth for his decision to resign.
She said he had made a sacrifice to prevent any possible negative repercussions on the government.
She said it was a pity that the government has lost such a capable minister.
Mr Yongyuth greeted her at the airport and also attended the news conference.
A party source said Pheu Thai is concerned that it may not be the right time to make changes to the cabinet lineup, as any change would require royal endorsement and His Majesty the King is currently recuperating from a bacterial infection.
The source said most Pheu Thai members would prefer a major reshuffle to a small one, possibly after a planned no-confidence debate by the opposition.
The cabinet reshuffle, when and if it takes place, would be in line with plans former ousted prime minister Thaksin Shinawatra has to see one of the members of the so-called House No111 club in the Interior Ministry job, the source said, referring to the 111 former Thai Rak Thai politicians who completed their five-year political bans earlier this year.
Several politicians have been put forward as possible contenders for the vacated posts, including Pongthep Thepkanchana, Pokin Polakul, Chaturon Chaisaeng and Phumtham Wechayachai.
Former deputy interior minister Sermsak Pongpanit has also emerged as a candidate for the interior post.
The source said a number of cabinet ministers could face the axe if the shake-up goes ahead, including Deputy Interior Minister Chuchart Hansawat and Education Minister Suchart Thada-Thamrongvech.
PM's Office Minister Woravat Au-apinyakul may have to go to pave the way for Warathep Rattanakorn.
There has also been speculation about ministers switching portfolios.
Deputy Transport Minister Pol Lt Gen Chatt Kuldiloke is reportedly seeking a deputy post at the Interior Ministry and Deputy Agriculture and Cooperatives Minister Nattawut Saikuar may be shifted elsewhere.
Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong's portfolio is likely to remain intact with the support of Ms Yingluck, although Pansak Vinyaratn, the prime minister's economic adviser, is unhappy with him.
Democrat party list-MP Ong-art Klampaibul said Mr Yongyuth did not resign of his own accord. The government was "cutting out an organ to prolong its life", he said.
Mr Yongyuth quit under duress in compliance with the wish of an influential person outside the country and the red shirts, Mr Ong-art claimed.
The resignation was also a measure to avert scrutiny of Mr Yongyuth's ministerial status by the opposition, he said.
Mr Yongyuth remains an MP, but that status is now also up in the air since a person dismissed from a state agency is deemed unfit under the constitution to be a member of parliament.
Mr Ong-art said the opposition Democrat Party would tomorrow ask the Constitution Court through the parliament president to rule on Mr Yongyuth's MP status.
Wicharn Meenchainant, a Pheu Thai MP for Bangkok, said the Democrats should stop "picking on" Mr Yongyuth.
Mr Wicharn said the Pheu Thai MPs for Bangkok will not pressure Ms Yingluck to reshuffle the cabinet.
They respect her decision regarding any changes to the ministerial line-up if she desires to make adjustments, he said.