The NSW Education Department will seek to break the dominance of the controversial Generate Ministries on NSW school chaplaincy.

The department will instead appoint a panel of chaplain providers for schools to choose from.

A tender, encouraging Parents and Citizens' associations, community groups and religious organisations to apply, was released a fortnight after a disgruntled minister linked to the Generate Ministries was revealed to be behind the push to have Gayby Baby banned from Burwood Girls High.

Presbyterian Minister Mark Powell took to radio to campaign against the film. It was later revealed he previously oversaw Generate Ministries scripture classes at Burwood Girls High, which were cancelled by the school principal.