Prof Richard Stubbs has a part-time role heading the university's Wakefield biomedical research unit at the Wellington campus and is trying to find a drug to cure type 2 diabetes.
He is also a specialist surgeon at the private Wakefield Hospital in Wellington, treating liver cancer and obesity.
Last week, the Health Practitioners Disciplinary Tribunal found him guilty of professional misconduct over the care he provided to a patient who died in February 2006 after an operation for gastric bypass surgery.
The patient, known as Mr N, was under anaesthetic for the surgery when tests showed abnormal liver function.
Instead of waking the patient to inform him of increased risk of death or complications as a result of the surgery, Prof Stubbs continued with the surgery.
He was censured, fined $20,000, ordered to undertake a mentoring programme for 18 months and have a practice audit, and ordered to pay almost $90,000 in costs.
Asked on Monday if the ruling would lead to Prof Stubbs' employment with the university being terminated, health sciences pro-vice-chancellor Prof Don Roberton said it would not.
"Prof Stubbs has a part-time research association with the university but no clinical practitioner role ... His research work with this university continues," he said in a statement.
For privacy reasons, the university was unable to discuss specific employment details of individual staff, he said.
Contacted for comment, Prof Stubbs said in a statement he sincerely believed he was acting in Mr N's best interests when he continued with the surgery, and had apologised to his family for taking a decision which "in this day and age, is considered was not mine to take".
He had kept the university informed over the complaint and the tribunal proceedings.
"Neither they, nor I, hold the view that the decision against me compromises my ability to function in my current academic position with the university."
