The senior bureaucrat at the centre of John Barilaro's controversial appointment to a New York trade role is no longer the head of the government agency responsible for the overseas jobs.
Amy Brown has lost the position of chief executive of Investment NSW, but she retains the higher role of Secretary of the Department of Enterprise, Investment and Trade.
A spokesperson for Investment NSW said the decision was "due to the scale and significant nature of the work involved in both positions".
The spokesperson said Ms Brown, who is currently on leave, made the decision to separate the two positions on August 11.
She did not resign from her role as chief executive.
"The role of Investment CEO has been separated out from the Secretary role description, title and accountabilities," the spokesperson said.
"This brings Investment NSW into alignment with Create NSW and Hospitality and Racing, with the three groups headed up by a CEO reporting to the Secretary."
The new chief executive will report to Ms Brown.
The future of Ms Brown's position in the public service had been in doubt after damning findings in an internal review, conducted by the former public service commissioner Graeme Head.
It found she kept information from members on the job panel, including the former trade minister Stuart Ayres's involvement in the process.
The review recommended that consideration should be given to taking action against her.
The Premier, Dominic Perrottet, has said the Department of Premier and Cabinet is responsible for deciding what should be done.
"The Secretary of the Department of Premier and Cabinet has commenced formal discussions with Ms Brown in relation to the findings of the Head Review," a department spokesperson said.
"That process has been paused for four weeks as Ms Brown has taken leave following the intense public examination of her role in the STIC Americas recruitment process."
