Michael Fallon, who currently holds ministerial posts in both the business and energy departments, has been appointed Minister for Portsmouth.
The newly-created role is designed to help the city in the aftermath of the loss of hundreds of jobs in the shipbuilding industry.
Last year defence giant BAE Systems announced it would move Navy shipbuilding to Scotland, ending an 800-year old tradition in Portsmouth.
The former Conservative Party deputy chairman will have the responsibility to support jobs and growth in the city.
The news comes just under a year after Mr Fallon joined the Department of Energy and Climate Change (DECC), replacing former Energy Minister John Hayes as part of a mini reshuffle by Prime Minister David Cameron.
It is believed to be the first time a minister has been given responsibility for a particular city since 1981.