The BJP chief said so in a tweet following a discussion with the Bharatiya Janata Party's core group team from Goa.
"It has been decided during a discussion with the Goa BJP core team that Manohar Parrikar will continue to lead the Goa government. There will soon be a reshuffle of ministers and their portfolios," he said.
Parrikar's poor health has sparked speculation over his continuation as the chief minister of Goa, and Shah had recently sent a central party leaders team to the coastal state to speak to allies and take stock of political situation.
The opposition Congress, which is the single largest party in the state, has also staked claim to form a government. The BJP has asserted that its government continues to have the support of a majority of MLAs.
Parrikar is at present admitted at the AIIMS and undergoing treatment for a pancreas ailment.