Alister Jack has been nominated for a knighthood for "political and public service" in the dissolution honours list.
Mr Jack was first elected to Westminster as Conservative MP for Dumfries and Galloway in the snap 2017 general election was first appointed as Scottish Secretary by Boris Johnson in 2019.
He was reappointed to the role by Mr Johnson's successor Liz Truss and by her successor Rishi Sunak.
Mr Sunak has handed peerages to former prime minister Theresa May, former chairman of the 1922 Committee Sir Graham Brady and his chief of staff in the dissolution honours list.
Mr Jack has been nominated for a knighthood along with deputy prime minister Oliver Dowden, former chief whip Julian Smith and former defence secretary Ben Wallace.
The Prime Minister’s chief of staff Liam Booth-Smith has been proposed for a peerage along with former transport secretary Chris Grayling, Sir Alok Sharma and Dame Eleanor Laing.
Among Sir Keir Starmer’s nominations for peerages are Dame Margaret Beckett, Harriet Harman, Margaret Hodge and Kevan Jones.
Mr Jack was caught in controversy last week after he allegedly told the BBC he won £2,100 after placing a series of bets on a July general election.
When quizzed on the comments, the Cabinet minister initially told the broadcaster they were a joke.
However, later he admitted placing three small bet on the date of the election.
The senior Scottish Tory said he had not broken any rules and was not under investigation by the Gambling Commission.
The revelation came just hours after the Conservative Party withdrew support from two candidates who also gambled on the timing of the vote.
"I am very clear that I have never, on any occasion, broken any Gambling Commission rules", Mr Jack told the broadcaster.
"I did not place any bets on the date of the general election during May - the period under investigation by the Gambling Commission.
"Furthermore, I am not aware of any family or friends placing bets. I have nothing more to say on this matter."
Later, he said: "Following reports today I want to be absolutely clear I have not breached any gambling rules.
"I placed two unsuccessful bets on the date of the general election and one successful one.
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