Charge d'Affaires James Carouso is staying in the role while a replacement for - who is now headed to Seoul - is found.
"He is a really fine man and I would have been honoured to work for him," Mr Caruso told Sky News on Thursday.
"But you know we need our very best person (in Seoul) given what's going on on the Korean Peninsula."
Mr Carouso, who has been acting since 2016, said Australia will get the ambassador it deserves as soon as possible.
Prime Minister Malcolm Turnbull said he understood why President Donald Trump had decided the admiral's expertise could be put to better use in Korea.
