Only two days after it was announced he had the job, it's been decided that Alastair Dawson will not be new Chief Executive Officer of the City of Onkaparinga.

In statement released on Tuesday night, Acting Mayor Simon McMahon said the council and Mr Dawson had mutually agreed not to proceed with the intended appointment.

He said the decision had been made in light of feedback received from the community and council staff.

Council will be reimbursing Mr Dawson for the preliminary costs of his relocation, which Mr Mr McMahon says are less than $10 000.

The CEO recruitment process will be put on hold until after the November local government elections.

Julia Grant will continue to serve as acting CEO in the interim.

Mr Dawson has previously held the positions of Vice President of the Central Queensland University and the CEO of Rockhampton Regional Council.

He attracted controversy earlier this year when he called the Australian of the Year, Grace Tame, childish in a social media post.

Shortly after Mr Dawson's appointment was announced earlier this week a group of Onkaparinga residents created a petition, calling for the elected members of the council to terminate his appointment.

They had also planned a 19 July rally to protest the appointment.