Mrs. Arroyo said Puno is "staying on at least for while" at the CHED even though his term had expired last July 20.
"He (Puno) didn’t really serve a full term the last time, so he’ll stay on at least for a while," Mrs. Arroyo said.
Puno earlier this week expressed hopes that Mrs. Arroyo would reappoint him as CHED chairman.
Although the term of office expired last July 20, he said Malacañang has yet to make announcement over his fate.
Puno noted precedents where the CHED chairman was reappointed by the President or in a "holdover" capacity.
Puno said the Department of Justice had rendered an opinion that he had served his first term as chairman and could be reappointed to another term under Republic Act 7722, or the Higher Education Act of 1994.
The law states that "the President shall appoint the full-time chairman and the commissioners for a term of four years, without prejudice to one reappointment."
On the other hand, the President also revealed she has already a short list of possible successors of outgoing National Transmission Corp. (Transco) president Alan Ortiz.
"There are some recommendations from the search committee, but they will, when they have notified the people (possible successors) appropriately, then they will make the announcements," Mrs. Arroyo told The STAR Friday night.
The President though did not elaborate on the reasons why Ortiz was sacked amid reports that an influential family, engaged in the power distribution business in the Visayas, allegedly pressured Malacañang into ousting the Transco chief.
Executive Secretary Eduardo Ermita also failed to explain why Ortiz, whom he described as a "very capable officer," would be removed and who could possibly replace him.
When asked if the President was not satisfied by Ortiz’ performance, Ermita replied there could be many reasons in replacing people in government.
"So I wouldn’t wish to venture that is the reason because I happen to know Dr. Alan Ortiz," he said.
"There’s got to be reasons but not necessarily because of dissatisfaction, there are many who are replaced (in government)."
Reports said an influential and wealthy family pressured Malacañang into removing Ortiz after Transco signed an agreement with Korea Electric Power Corp. and Salcon Power Corp. for the construction of a 200-megawatt power plant in Cebu.
The family is also engaged in the power sector business in the Visayas.