University of Wollongong Chancellor Michael Still revealed on Friday he would step away pending the conclusion of a inquiry by NSW Independent Commission Against Corruption.
"The University of Wollongong Council respects Mr Still's decision, which he has made with the best interests of the university's staff, students and broader community in mind," a spokesperson wrote in a statement.
"Our focus remains firmly on our students, our staff and the teaching and research that are at the core of our purpose."
The corruption body is examining whether Mr Still, the university's chief governance officer Alyssa White, or other staff and contractors improperly awarded or influenced the award of work to Aspirall Consulting International.
He is also under the spotlight as ICAC explores whether he or other staff failed to manage a conflict of interest by employing John Dewar as interim vice-chancellor and engaging consulting firm KordaMentha.
Finally, the watchdog will investigate whether Ms White or others subverted recruitment processes or governance roles to benefit her associates.
ICAC's inquiry will run for three weeks from June 22.
University council member Greg West will take up a position as acting chancellor.
The former chair of Education Australia Limited and a Chartered Accountant, Mr West has previously held roles in the investment banking and consulting services, and also been the chief executive of an ASX-listed biotechnology company.
Mr Still's decision follows a governance shake up at another Australian university.
In May, Australian National University announced chancellor and former foreign minister Julie Bishop had resigned after a series of job cuts, bullying allegations, and disputes between staff and management.
The university's vice-chancellor Genevieve Bell in late 2025 stepped down following a contentious cost-cutting proposal which would have made hundreds of staff forcibly redundant.
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