Nine of the 17 cabinet members announced are women.

The highest-profile of them, Mariana Vieira da Silva, remains as presidential minister and also takes on a new role as deputy prime minister.

President Marcelo Rebelo de Sousa gave his blessing to the cabinet choices in a statement.

Costa led two minority governments before his Socialist Party snagged an absolute majority of seats in the country's parliament in the January election.

It marked the second time the party has achieved such a majority since the country's return to democracy after the Carnation Revolution in 1974.

Eleven of the 17 ministers named are new to the team. The most important change is the former mayor of Lisbon Fernando Medina becoming finance minister, replacing Joao Leao.

Former defence minister Joao Gomes Cravinho becomes foreign minister, with Helena Carreiras taking over the defence post, the first female in the role.

Jose Luis Carneiro remains interior minister.

Costa reduced the number of ministries from 19 to 17.

The ministers will be sworn in next week.

Costa is facing huge challenges. His party's left- and right-wing rivals have decried high taxes, low pensions often under 300 euros ($A440), some low wages and increasing housing shortages.

Two budgets must also be decided this year - one for 2022 and another several months later for 2023.

Australian Associated Press