Bega Valley Shire councillors on Wednesday agreed to appoint Anthony McMahon as acting CEO when the general manager position becomes vacant in early July.
Leanne Barnes advised the council in February she would not seek the renewal of her GM contract when it expires later this year.
Mayor Russell Fitzpatrick said it was more important to find the most suitable candidate than to rush a permanent replacement now.
"All councillors participated in the recruitment process, and an independent, external member was also included on the panel," Cr Fitzpatrick said.
"On the basis of the panel's assessment and guidance from our contracted recruitment agency, McArthurs, we have resolved not to rush the process, to ensure we make the right appointment.
"Instead, we will appoint Mr McMahon as acting CEO from July 5 until March 25, 2022, or until the appointment of a new CEO, noting the new council will undertake the recruitment process.
"Mr McMahon is currently our director of assets and operations and will provide the organisation with strong leadership until a permanent CEO is appointed."
Councillors resolved to rename the general manager position to chief executive officer at the council meeting on February 17.