Deputy Prime Minister Barnaby Joyce’s new partner was given a new job in Resources Minister Matt Canavan’s office in a role which was created specifically for her, after the pair’s relationship was revealed to fellow staff members.

Vikki Campion, who is pregnant with Mr Joyce’s child, was employed as a senior advisor to Mr Canavan after her relationship with Mr Joyce created “serious dysfunction” in his office, the Daily Telegraph reports.

Ms Campion was Mr Joyce's press secretary prior to that.

Ms Campion, 33, and Mr Joyce, 50, are living together in the NSW town of Armidale and their baby is due within months.

The newspaper said there is no suggestion she was not a suitable candidate for the role.

Mr Joyce, who last year announced he and his wife Natalie Joyce were separating, broke his silence on the scandal on Wednesday night.

“I’ll say up front that one of the greatest failures in my life was the end of my marriage,” he told ABC’s 7.30 program.

Mrs Joyce released a statement saying she was “deeply saddened” to learn the pair is having a child together.

“I understand that this affair has been going on for many months and started when she (Vikki Campion) was a paid employee,” Ms Joyce said.

“This situation is devastating on many fronts. For my girls who are affected by the family breakdown and for me as a wife of 24 years, who placed my own career on hold to support Barnaby through his political life.”

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