The New South Wales Government is moving to overhaul the way the police force is held to account.

NSW Police Minister Troy Grant announced the Police Integrity Commission would be scrapped and the ombudsman's office would be stripped of its ability to investigate police.

Instead a single new watchdog, the Law Enforcement Conduct Commission (LECC), will be set up and given oversight of the police force and the NSW Crime Commission.

The move is one of the recommendations from former shadow attorney-general Andrew Tink.

The Government commissioned Mr Tink to conduct a review of police oversight in the wake of parliamentary inquiries into the police bugging scandal which embroiled some of the state's most senior officers.

The inquiries raised serious questions about the way the Police Integrity Commission and the force's internal affairs unit had handled complaints into the bugging operation, which targeted civilians and police officers including the now Deputy Commissioner Nick Kaldas.

Mr Grant said the new watchdog would have two clearly defined functions; detecting and investigating serious misconduct and corruption, and overseeing complaints handling.

He said the new system would provide stronger oversight, with much clearer responsibilities.

"Over time the system overseeing NSW Police and law enforcement activities has become very complex and a little cumbersome, which has diminished a lot of confidence both from law enforcement bodies but also the community," Mr Grant said

"I believe that the lack of confidence has been growing within the NSW Police force of the Police Integrity Commission."

Mr Grant said a serving or retired judge would be appointed as commissioner to head up the LECC.

'Police complaints system can give an early warning'

The new watchdog will have two divisions — Integrity and Oversight — which will each be led by a deputy commissioner.

The Deputy Commissioner of Integrity will be responsible for the functions now exercised by the Police Integrity Commission, and they will continue to be able to use covert investigation powers and public hearings.

While the Deputy Commissioner for Oversight will investigate complaints received directly about officers, as well as monitor the police force's handling of complaints.

Mr Tink welcomed the news that the Government was adopting all the recommendations from his report.

"The police complaints system can give an early warning of more serious patterns of misconduct, so it's logical to have one body responsible for complaints oversight and the investigation of serious misconduct," Mr Tink said.

"This will strengthen information sharing and ultimately the accountability of law enforcement."

Legislation to form the new commission is expected to be introduced to NSW Parliament in 2016 and to become operational in 2017, which will allow for a transition without affecting active investigations.

Mr Grant said Acting Ombudsman Professor John McMillan would still complete Operation Prospect — the long running investigation into the police bugging scandal.

"The reason Prospect remains with the ombudsman is that hopefully that will be resolved sooner rather than later and the LECC won't be stood up until the first of January 2017."