Shapps replaces Ben Wallace, who said he wanted to step down after four years in the role and would quit as a lawmaker at the next national election.
Wallace had taken a leading role in shaping Britain's response to Russia's invasion of Ukraine last year.
Under him, Britain provided 2.3 billion pounds ($2.9 billion) of military aid to Kyiv in 2022 and became the first country to start supplying Ukraine with long-range cruise missiles in May this year.
Shapps' appointment is not expected to change Britain's support for Ukraine against Russia.
Grant Shapps previously served as Secretary of State for Transport in the Johnson government from 2019 to 2022, Secretary of State for Business, Energy and Industrial Strategy from 2022 to 2023, Home Secretary from 2022 to 2022, and Secretary of State for International Trade from 2020 to 2022.
Shapps is a member of the Conservative Party and has been an MP since 2005. He is a former businessman and worked as a marketing director before entering politics.
Shapps' political career has been marked by his ability to survive and thrive in turbulent times. He was appointed to the Shadow Cabinet in 2007, just two years after being elected to Parliament.
He then served in a number of ministerial roles in the Cameron and May governments, including as Minister of State for Housing and Local Government and Co-Chairman of the Conservative Party. (ILKHA)