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Councils are required to readvertise chief executives' positions every five years.
Mr King (60) was one of three people shortlisted from more than 30 applicants.
The front-runners were interviewed by all councillors on Tuesday and Wednesday.
Announcing the council's decision on Thursday, Invercargill Mayor Tim Shadbolt said he could assure residents the process was ''thorough and robust''.
Mr King said in a statement the review process was ''personally stressful'' and he could now look to the future and make plans with certainty.