President Jacob Zuma's office yesterday confirmed that Netshitenzhe - a strong ally of axed head of state Thabo Mbeki - has resigned as the director-general of policy co-ordination and advisory services.
The unit is part of the Presidency and is instrumental in formulating government policy.
The Presidency's head of communications, Vusi Mona, said Netshitenzhe resigned "following discussion and by mutual agreement with the minister for the national planning commission, Trevor Manuel".
The news came only a day after Zuma announced the reconfiguration of his Cabinet, kicking Manuel out of the important economic cluster.
This was seen as a snub to Manuel and Netshitenzhe, both of whom have championed the national planning commission green paper that puts the former finance minister at the centre of economic planning.
But ANC and government insiders say Netshitenzhe resigned because of plans by the Presidency to strip him of his power and authority - effectively demoting him to the level of a deputy director-general.
As the director-general of Policy Co-ordination and Advisory Services under Mbeki, Netshitenzhe had direct access to the president.
But, with the changes proposed for the Presidency, he would have been expected to report to Zuma's director-general, Vusi Mavimbela.
Senior officials close to Netshitenzhe said he quit because he felt that he was "not trusted" by the new administration.
Mavimbela said that, even under Mbeki, Netshitenzhe did not report direct to the president.
"He has always reported to a minister [in the Presidency]. It is wrong to suggest that he was reporting to the president," Mavimbela said.
Netshitenzhe could not be reached for comment yesterday.
Mona said the contribution of Netshitenzhe, who has served in the government since 1994, has been "invaluable".
Before his Policy Co-ordination and Advisory Services job, Netshitenzhe headed the government communications and information system, and was instrumental in formulating much of the government's policy.
He remains a member of the ANC's influential national executive committee.
Tackler