Former NSW deputy premier John Barilaro has decided to withdraw from his role as the state's Trade Commissioner to the Americas.
Mr Barilaro's appointment to the position, which is based in New York and comes with a $500,000 annual salary package, was confirmed earlier this month.
The recruitment process has been the subject of intense media scrutiny, as well as two separate inquiries at Macquarie Street.
Mr Barilaro has told Investment NSW his position has become untenable and a distraction for the government.
"It is clear that my taking up this role is now not tenable with the amount of media attention this appointment has gained," he said in a statement.
"I believe my appointment will continue to be a distraction and not allow this important role to achieve what it was designed to do, and thus my decision.
"I stress, that I have always maintained that I followed the process and look forward to the results of the review."
The CEO of Investment NSW, Amy Brown, said Mr Barilaro notified her this evening he was withdrawing from the role, effective immediately.
"I request that his privacy be respected at this time," she said, in a statement.
"Investment NSW is assisting the Department of Premier and Cabinet and NSW Legislative Council Inquiry in reviews of the Senior Trade and Investment Commissioner Americas recruitment process, and as such it is not appropriate to make any further comment."
Mr Barilaro announced the creation of the role, and several others, when he was the trade minister, in late 2020.
The opposition had been calling for Mr Barilaro's travel to New York to be delayed until a parliamentary inquiry was completed.
Mr Barilaro resigned as deputy premier, and from the Parliament, late last year.
Premier Dominic Perrottet has maintained Mr Barilaro's appointment was above board and made at arm's length from the government, but had ordered his own internal review which he committed would be made public.
Opposition Leader Chris Minns said Mr Barilaro should never have been appointed.
"It's telling that the Premier didn't sack John Barilaro, he walked," he said in a statement.
"Mr Barilaro should never have been appointed to this job in the first place.
"Serious concerns remain about how he got the job and the parliamentary inquiry will continue to pursue those."
This morning, NSW Transport Minister David Elliott said Mr Barilaro — his former long-time Coalition colleague — should withdraw from the role.
Yesterday, Ms Brown gave evidence to the parliamentary inquiry examining Mr Barilaro's appointment.
She told the inquiry an adviser in Mr Barilaro's office had asked if the recruitment process for several global trade roles, including the job in New York, could be changed so that they were direct ministerial appointments.
She also gave evidence that a candidate named Jenny West had been verbally offered the New York position, before a change in government policy meant the process was halted.