NSW building tsar David Chandler has decided to stay in his role just under two months after handing in his shock resignation letter.

Mr Chandler’s surprise early July decision to depart was linked to the dismissal of then-trading minister Eleni Petinos after bullying accusations emerged from her office.

It was revealed on Thursday that Mr Chandler’s resignation letter was sent to Premier Dominic Perrottet’s office just four hours before Mr Perrottet sacked Ms Petinos.

Customer Service Minister Victor Dominello announced on Friday that Mr Chandler would stay in his role as NSW building commissioner until August next year.

“Mr Chandler is a highly respected industry leader and his commitment to the year ahead ensures we will maintain momentum in lifting customer confidence across residential building and construction in NSW,” Mr Dominello said.

“”He has made significant contributions to building industry reform in this state and I am happy the work can continue under his leadership.”

Mr Chandler’s resignation has been a headache for the Perrottet government.

Mr Perrottet denied reading Mr Chandler’s resignation letter before Department of Customer Service secretary Emma Hogan referred it to the state’s corruption watchdog.

Mr Perrottet said he had since read the letter. It noted a problematic relationship between Mr Chandler and Ms Petinos.

The letter also raised concerns about Ms Petinos’ relationship with Coronation Property Group, which briefly employed former NSW deputy premier John Barilaro.

Mr Perrottet said his choice to fire Ms Petinos as minister was based on his conversations with Ms Hogan and has defended her over the bullying allegations.

-AAP