President Estrada has accepted with reluctance the resignation of former Supreme Court Justice Cecilia Muñoz-Palma as chairman of the Philippine Charity Sweepstakes Office (PCSO).
PCSO general manager Rosario Lopez, who once chaired the Securities and Exchange Commission, will replace Palma.
The President said Palma had submitted her resignation as early as November.
"She told me that she was already too old and that she wanted to retire already and join her family," he said, adding that he had tried to persuade Palma to stay on.
Palma, 85, was the first official appointed by Mr. Estrada when he assumed the presidency in 1998. The President said Palma's long, unblemished record in public service was the main reason he wanted her to be part of his administration.
"I admire her very much and I'm very grateful that even for a short while she helped my administration," Mr. Estrada said.
The President revealed that newly designated PCSO chief Lopez will also function as concurrent general manager of the agency.
Lopez was a former chairwoman of the Securities and Exchange Commission.