The job with a €146,034 salary was advertised last autumn and the competition run by outside consultants supported by an appointment committee of the governing body.
The process resulted in a recommendation, approved last Friday, that Dr Murphy be reappointed to the job he has held since 2004.
Although his second term will not begin until Sept 1, a CIT spokesperson said the process was started early last year to leave enough time to allow the competition be rerun in the event a nominated appointee did not take up the position.
Because of the planned amalgamation with Institute of Technology Tralee, all senior appointments are being made on a short-term contract basis, which means the post is being filled for five years instead of 10.
Dr Murphy is 63 and has worked in public service for more than 40 years.
The college spokesperson said there would be no extra pension costs incurred by his continuing beyond normal retirement age and that he would not be in receipt of any pension while still working and receiving a salary.
He was wished well in the role by CIT governing body chairman Bob Savage.
“We acknowledge his major contribution to the ongoing development of CIT and the future development of the proposed Munster Technological University,” Mr Savage said.
The 12,000-student college plans to merge with the smaller Institute of Technology Tralee and to seek approval from the Higher Education Authority later this year to apply for designation as a technological university.
Dr Murphy led calls for CIT to be given university status before a new technological university sector was proposed in the Government’s 2011 higher education strategy.
The proposed legislation enabling the creation of the sector is expected to be outlined by Education Minister Ruairí Quinn today after discussions with Cabinet colleagues yesterday.
The Higher Education Authority’s strict application and assessment procedures mean the process will take several years for any of the three groups of colleges which have so far expressed interest.
Work is also well-advanced on plans for a Dublin Technological University, which would see the merger of Dublin Institute of Technology, Institute of Technology Blanchardstown, and Institute of Technology Tallaght.
The other project being prepared is the merger of Institute of Technology Carlow and Waterford Institute of Technology to apply to become a technological university for the south-east.