Former NSW Premier Barry O'Farrell has been announced as Racing Australia's new chief executive.

O'Farrell will take over from Peter McGauran, a former minister in the Howard government, who is leaving after almost five years at the helm of racing.

McGauran has overseen a raft of changes in the industry since taking over in 2012 including the merger of the Australian Racing Board, Racing Information Services Australia and the Australian Stud Book.

O'Farrell led the NSW Liberal Party for seven years, serving as premier from 2011 to 2014, until he stood down after admitting to misleading the Independent Commission Against Corruption over a $3000 bottle of wine accepted as a gift.

In late 2015, O'Farrell conducted a review into illegal offshore wagering with the federal government April accepting 18 of his 19 recommendations to protect Australian consumers.

O'Farrell, who starts his new role in January, spent 20 years in state parliament and has served on the board of the Australia-India Council since his resignation from politics.