Treasury secretary Martin Parkinson has received a stay of execution from the Abbott government.
He has been asked by Prime Minister Tony Abbott to stay on in the role until after Australia hosts the G20 leaders' summit in November.
Mr Abbott's decision has been confirmed by the office of Treasurer Joe Hockey.
The news comes just two weeks after Mr Abbott appeared to dig his heels in against any suggestion that Dr Parkinson ought to stay in the country's top economic role, saying he reserved the right to ''stamp'' his authority on the country's premier economic agency.
''You've got to understand that incoming governments do very much want to place their stamp on the economic policy of the country and that is exactly what we are doing,'' Mr Abbott said.
''We are placing our stamp on the economic policy of the country and let there be no doubt, let there be no doubt, that Australia's policy direction changed very substantially back in September of last year."
His comments came after Fairfax Media revealed that the Abbott government had defied the advice of former prime minister John Howard and former treasurer Peter Costello when it axed Dr Parkinson after winning the election.
Treasurer Joe Hockey had reached out to Mr Howard and Mr Costello in the days before the September 7 poll to discuss the future of Dr Parkinson, and both men told the Treasurer to keep Dr Parkinson in one of the nation's top economic roles.
But that call was ignored by Mr Abbott, who announced Dr Parkinson's resignation in his first official act after being sworn in in September last year.
Resources department secretary Blair Comley, industry secretary Don Russell and agriculture secretary Andrew Metcalfe were also axed and successors named, but a successor to Dr Parkinson has not yet been announced.