The NSW Treasurer says he was surprised when he first learned John Barilaro had been appointed to a plum trade role to be based in New York.

Mr Barilaro yesterday withdrew from his new job as trade commissioner to the US, after two weeks of intense scrutiny over how he was appointed to a role he had in fact created while he was the trade minister.

It's been revealed that a previous round of recruitment identified a successful candidate last year, and she was verbally offered the job.

However, it was rescinded after a decision of government to make the role a ministerial appointment.

Treasurer Matt Kean said he had been assured everything was above board.

"John made the right call … it was a distraction," he said.

"I was surprised John got the job but again I was told it had gone through the proper process, that's what I'd expect for anyone to apply for one of these government jobs.

"There's obviously an inquiry underway we'll wait until the inquiry finishes its work to make any judgements."

Transport Minister David Elliott agreed Mr Barilaro had made the right decision.

"Can I just say 'thank you' to John for doing the right thing, for standing aside and not going ahead with the appointment," he said.

A review ordered by Premier Dominic Perrottet and a separate parliamentary inquiry will continue.

Labor's Shadow Treasurer Daniel Mookhey said there were still a lot of questions to be answered, including what was behind the move to make the role a ministerial appointment, and why that didn't eventuate.

"Premier Perrottet, [Trade] Minister Ayres need to explain how it is a successful woman was offered the job and that was retracted and then a process restarted that lead to the appointment of John Barilaro," he said.

"One of the questions will be what precise role did the then Deputy Premier [John Barilaro] play in taking a submission to cabinet to turn these into ministerial appointments."

Mr Barilaro said he decided to withdraw from the position because of the ongoing media attention.

"I believe my appointment will continue to be a distraction and not allow this important role to achieve what it was designed to do, and thus my decision," he said in a statement.

"I stress, that I have always maintained that I followed the process and look forward to the results of the review."