Mike Baird has quit as Cricket Australia chair and will be replaced by David Boon in the interim.
Baird supported the privatisation of the Big Bash league, resulting in lost support from Cricket NSW.
Baird had an option of moving into an independent role but said he did not wish to continue without state support.
Mike Baird has quit as Cricket Australia chair, after his own state association refused to back its representative in the fallout over the privatisation of Big Bash League clubs.
The former NSW premier informed fellow board members on Monday he would not seek re-election at next month's annual general meeting, with David Boon to take over as interim chair.
The decision comes after Baird lost the support of Cricket NSW, with the country's most powerful state unhappy with the decision to allow private investment.
Baird had served as NSW's representative on the board, and approached it recently to confirm it would not support him in the current circumstances.
He did have the option of moving into an independent role, but AAP was told Baird did not wish to continue without the support of all states.
Cricket Australia (CA) officials maintain they continue to back the call for the privatisation of clubs, which was confirmed earlier this month.
"After much consideration I have decided to stand down as CA chair and director," Baird said in a statement.
"I am delighted that David Boon has agreed to undertake the interim chair role while we complete the formal chair process, and I will undertake a transition process with David over coming weeks."
Baird had been on the CA board for six years and has served as chair since February 2023.
Alongside Todd Greenberg, he formed one of the most powerful duos in Australian sport.
In a statement on Monday, he again referenced the privatisation of the BBL as a positive move for the sport.
"This year CA will report record revenue, profit, attendance and viewership, and most importantly a 40 per cent increase in participation over the past four years," Baird said.
"With recent decisions on the Big Bash I also believe the long-term sustainability is assured.
"I believe Australian cricket continues to be well lead by the CA board."
Baird's exit comes after Cricket NSW criticized the decision to allow privatisation earlier this month.
"This decision risks leaving cricket in NSW and Australia strategically and financially worse off, with direct consequences for our ability to invest in grassroots cricket," a Cricket NSW statement read earlier this month.