Lt General Masud Uddin Chowdhury's service was placed under the Ministry of Foreign Affairs, an official of the Establishment Ministry said Sunday about the change in the army hierarchy, reports UNB.
Gen Masud was serving as Principal Staff Officer (PSO) of the Armed Forces Division.
Foreign Office sources said Gen Masud would be tipped as Ambassador to a foreign country.
Presently, the post of High Commissioner in Australia and the posts of Ambassador in Germany, France, Libya, the Maldives and Morocco are vacant.
According to the news agency, Lt Gen Masud was regarded by many as a key player in the 1/11 changeover.
He was the chief coordinator of the corruption-busting task forces since they came into being.
His latest transfer puts all speculation to rest about his role in the anti-corruption national committee that oversees the much-feared task forces.
A graduate of the National Defence College, Lt Gen Masud Uddin Chowdhury was inducted into the army from the Jatiya Rakhshi Bahini and became a two-star general when Khaleda Zia was prime minister.
As she returned to power in 2001, Gen Masud, then a brigadier general, was made head of the Counter-Intelligence Bureau at the Directorate General of Forces Intelligence.
A recruit of the 6th batch of the JRB, he joined the powerful paramilitary in May 1975.
Gen Masud is the brother-in-law of Khaleda's once-powerful younger brother and former major Sayeed Iskander.
On January 11, 2007, he was the general officer commanding the powerful 9th Infantry Division and believed to have played a vital role in enforcing emergency declared on the day by the President.
Last year, he was promoted to the three-star rank, along with two others.