A rising star in the Northern Territory government, 34-year-old Aboriginal man Chansey Paech, has named reducing Indigenous incarceration as a key focus in his new role as Attorney General and Minister for Justice.

Mr Paech has been appointed Attorney-General and Justice Minister in a cabinet reshuffle following Michael Gunner's retirement.

He has retained his Racing, Gaming and Licensing, Local Government, Arts, Culture and Heritage, and Desert Knowledge Australia portfolios.

"I welcome the opportunity to work in these new portfolio areas, to build on the enormous amount of work that has already been done by the former Attorney-General Selena Uibo," Mr Paech said.

"I will continue to advance the reforms in this space, particularly the Aboriginal Justice Agreement, which is driving improved justice responses and services to Aboriginal Territorians by engaging and supporting Aboriginal leadership."

Mr Paech said the government acknowledged the crisis of over-representation of Aboriginal people in Territory prisons and youth detention.

The Northern Territory has the highest incarceration rate of any Australian jurisdiction, and the second-highest Indigenous incarceration rate after Western Australia.

"I plan to continue to work to turn the tables on this by delivering the necessary changes to build healthy, safe and resilient communities, including supporting community courts, law and justice groups and alternative to custody programs," Mr Paech said.

"I am acutely aware that there is a huge amount of work to be done towards improving justice outcomes for Territorians, particularly Aboriginal Territorians, but I'm absolutely ready to give it a go and I'm looking forward to the challenges ahead."

Mr Paech was first elected a member of the Alice Springs Town Council 10 years ago. His mother is Eastern Arrernte.

In 2016 he was elected to the NT Legislative Assembly as the Member for Namatjira, a bush electorate in Central Australia.

Elected to represent another bush electorate, Gwoja in 2020, Mr Paech is currently in the second year of a four year term.