Mr Bird tendered his resignation in December two-years into his five-year contract, and was due to finish at the council in March to return to private enterprise.

In light of the Abbeyard and North East fires which burnt a quarter of the shire, including 2000 hectares of pine plantations, mayor Peter Roper and the council asked Mr Bird to reconsider his decision to resign.

The fire also saw visitation in the shire stagnate, costing the shire an estimated $90 million in tourism income.

Mr Bird said the situation in the shire has drastically changed, and he now intended to stay with council for another three years until the end of his contract.

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"The social and economic landscape has changed dramatically since I submitted my resignation in December," he said.

"We have months of work ahead to rebuild the economy, support our communities and attract visitors back to our stunning towns.

"It's essential that we have continuity during this time, and I'm honoured that council considers my leadership to be an important part of giving our communities the support and stability they need."

Cr Roper said the region's bushfires were not yet under control and the shire could find themselves in another emergency situation before the season ends. He said it was important the shire had strong, stable leadership as they entered a challenging period of recovery.

"Our residents have been affected by evacuations and uncertainty, with many people spending much of the first few weeks of the year unsure of whether they were safe, preparing themselves and their families for evacuations while dealing with smoke, stress and unpredictable weather," he said.

"The Alpine Shire has been fortunate to sustain minimal infrastructure damage... but the economic impact of losing so many visitors at what is traditionally the busiest time of year has been devastating."