Dr Kerry Schott will take on the role of acting board chair of the Australian Rail Track Corporation, after completing a review of the financially beleaguered Inland Rail project.
Infrastructure Minister Catherine King and Finance Minister Katy Gallagher announced Dr Schott's appointment on Wednesday.
Current chair, Peter Duncan, was appointed in February, and will take a three-month leave of absence to serve as acting secretary of the Department of the Premier and Cabinet in NSW.
"It is a sign of how much Mr Duncan's expertise is valued that he has been asked to take on this role, and we are sure his advice will be appreciated by (NSW) Premier Chis Minns," the ministers said.
The Australian Rail Track Corporation is overseeing the Inland Rail project, the freight line planned to link Melbourne and Brisbane.
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Dr Schott's review of the project found it had blown out to more than $31 billion, nearly double what was projected just three years ago.
Construction of the rail line began in 2018 and Ms King has hit out at the Coalition's management of it.
A statement from the office of Nationals spokesperson for Infrastructure Bridget McKenzie said the review "vindicated the importance" of the project.
The Albanese government has accepted all 19 recommendations made.
"We are grateful to Dr Schott for agreeing to undertake this important task and we look forward to welcoming Mr Duncan back to the role later in the year," the ministers said.