The Prime Minister has signalled another merger of government agencies, but says there are no plans for wholesale restructuring of the public service.
On Thursday, John Key will deliver a major speech setting out the next phase of the Government's plan for the state sector.
In its first term, the National-led Government cut about 2500 jobs from the public service.
Mr Key is not yet saying how many more jobs he expects to go, but says the public service needs to be modernised.
He says the Government is making good progress in reducing costs and increasing efficiency but he does not believe in making mergers just for the sake of making them.