MANILA, Philippines -- President Gloria Macapagal-Arroyo will keep her Cabinet, at least for now, senior Palace officials said, as they dismissed anew talks of a looming revamp.

Executive Secretary Eduardo Ermita said a Cabinet reorganization was not being discussed.

"There's no such thing," Ermita told reporters Friday at the first quarter fellowship meeting of the Association of General and Flag Officers Inc. "There's no talk whatsoever about a Cabinet revamp."

Interior and Local Government Secretary Ronaldo Puno said President Arroyo remains satisfied with her Cabinet, which is focused on implementing the reform agenda of her administration.

Talks abound in the past few weeks that Defense Secretary Gilbert Teodoro would be replaced by outgoing Armed Forces chief Hermogenes Esperon Jr., who will retire on May 9.

Teodoro will reportedly take the job of Justice Secretary Raul Gonzalez, who has earlier taken a leave of absence due to health problems.

"I think Secretary Teodoro is qualified to be anywhere, but I think he is exactly where he needs to be right now. He's a very good Defense Secretary and I think he should continue," Puno said in an interview.

Asked if Esperon would get a post after his retirement, he said, "I think something is being deliberated upon by the President. But I think we can all expect General Esperon to be in some responsible position in government after his retirement."