Tasmania's Director of Public Prosecutions, Tim Ellis, has been sacked almost two years after causing a fatal accident on the Midland Highway.

Premier Will Hodgman and Attorney-General Vanessa Goodwin announced 59-year-old Ellis would not continue in the role of DPP, after the Governor accepted their recommendation he be removed from the position.

Ellis was given a four-month suspended jail sentence last month, after losing an appeal against a finding that he caused the death of 27-year-old Natalia Pearn by negligent driving on the Midland Highway in March 2013.

Ellis had pleaded not guilty to the charge of death by negligent driving claiming he suffered from sleep apnoea and may have fallen asleep at the wheel.

The Attorney-General said she had told the Pearn family about the decision to sack Ellis.

In leaving the position, Ellis will not be given a payout but will receive his accrued annual and long service leave entitlements which amount to approximately $290,000.

In a statement, Dr Goodwin said she acknowledged the "community concern" about Mr Ellis being suspended on full pay from his $500,000 per annum job for such a long time.

Natalia Pearn died in a head on crash caused by Tasmanian DPP Tim Ellis. ( Ebony Bejah )

"At present there is no legal power to suspend the Director of Public Prosecutions without pay and the Government intends to look into this," she said.

"The Government shares the community's concern and I will return to this matter at a later stage."

Dr Goodwin said the Government would start working through a process to appoint the next DPP.

"In the meantime, Mr Daryl Coates SC, who has so ably filled the role of Acting DPP while this matter is resolved, will continue in that role," she said.

Victim's mother 'stunned' by sacking

The victim's mother, Kristine Pearn, said the decision was a welcome surprise.

"I'm a bit stunned because I really didn't think it would happen," she said.

"I think the Government, they took their time and they were careful and they made the right decision."

Timeline of events: 2013 March 24: Ellis crashes into Natalia Pearn's car on Midland Highway

March 24: Ellis crashes into Natalia Pearn's car on Midland Highway October 1: Ellis pleads not guilty causing death by negligent driving

October 1: Ellis pleads not guilty causing death by negligent driving November 18: Ellis suspended from $500,000 pa job on full entitlements; Daryl Coates becomes Acting DPP 2014 March: Trial begins

March: Trial begins June 26: Ellis found guilty of causing death by negligent driving

June 26: Ellis found guilty of causing death by negligent driving July 11: Ellis lodges appeal against finding

July 11: Ellis lodges appeal against finding July 15: Interim stay placed on sentencing, search for judge to hear appeal

July 15: Interim stay placed on sentencing, search for judge to hear appeal November 11: Victorian judge hears appeal against guilty finding

November 11: Victorian judge hears appeal against guilty finding December 3: Justice David Harper dismisses appeal

December 3: Justice David Harper dismisses appeal December 23: Ellis given four-month suspended jail sentence, banned from driving for two years 2015 Ellis sacked as Tasmania's Director of Public Prosecutions

Mrs Pearn broke down while she recalled the support her family had received.

"We've been inundated with messages from the general public about Tali and they've been amazing," she said.

"I think the Government were as well ... they did the right thing and I'm glad they took the time they did because they had to be careful.

"Now we've just got to learn to live without her in our lives. It's tough."

The decision has been applauded by legal experts.

Mathew Verney from the Law Society of Tasmania said he had expected the decision.

"I think it would have been very difficult for Mr Ellis, with a suspended sentence hanging over his head, to continue in the role, whether that be appearing in court or even just discharging his responsibilities," he said.

The Opposition also said the Government got it right.

Shadow attorney-general Lara Giddings said she appreciated the situation was difficult for everyone involved.

"Faith in our justice system is of paramount importance and the community's trust in the important position of DPP can be restored as a result of this decision," she said.

Ms Giddings said the DPP was currently a lifetime appointment and she would push to have that changed.

"The Government must prepare amendments for the first sitting of Parliament to allow for a time-limited contract for the appointment of a new DPP," she said.

"This would bring this appointment in line with other senior appointments across the public service as well as interstate."