Arthur Sinodinos resigns as Assistant Treasurer, paving way for possible Cabinet reshuffle

Arthur Sinodinos has told the Prime Minister he is resigning as Assistant Treasurer, paving the way for Tony Abbott to reshuffle his Cabinet.

Senator Sinodinos stood aside from his ministerial duties in March after being called before the Independent Commission Against Corruption (ICAC).

He was questioned about his former role as a director of Australian Water Holdings (AWH), which ICAC has been investigating over corruption allegations.

At the time, Mr Abbott indicated he expected Senator Sinodinos to resume his duties once the ICAC case had concluded.

But the report from ICAC has been delayed from January 2015 to March, which Senator Sinodinos said he was "extremely disappointed" about.

"I believe I'll be vindicated in terms of no corrupt conduct or illegality and I look forward to those reports coming out in due course but, as I've said, that could be some time yet," he said.

In recent weeks, he had been discussing his position with Mr Abbott and Liberal Party federal director Brian Loughnane.

"The Prime Minister has advised me that I cannot resume ministerial duties until the ICAC matters are completed and reported upon," Senator Sinodinos said.

"On that point the Prime Minister and I agree.

"We, as a government, need to have a full-time assistant treasurer, so it was by mutual agreement that I should resign.

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Arthur Sinodinos resigns as Assistant Treasurer, paving way for possible Cabinet reshuffle