However,Mr Betts will not start in that role and instead Mr Coutts-Trotter,the Justice Secretary who has also headed the departments of education,finance and Community Services,will become the secretary of the Department of Premier and Cabinet.
Mr Coutts-Trotter,who is married to federal Labor frontbencher Tanya Plibersek,has long been considered one of the best public servants in NSW,after starting as director-general of education in 2007.
He was appointed to that role by then-NSW Labor treasurer Michael Egan.
His personal story of turning his life around has also seen him gain respect across the political divide. At age 19,Mr Coutts-Trotter served three of a nine-year jail sentence after being convicted in 1986 of importing heroin.
When he was appointed as Justice secretary,Mr Coutts-Trotter emailed his 40,000 staff - including those working in prisons - explaining his criminal history and imploring them to keep an open mind about him.
Mr Coutts-Trotter’s appointment was confirmed by Mr Perrottet late on Thursday.
“I am very pleased Michael has agreed to head the Department of Premier and Cabinet at this critical time,and I am looking forward to working closely with him as we continue to build a better future for NSW,” Mr Perrottet said.