The Appointments Committee of Cabinet approved the appointment of sixty-three-year-old Paul on a contract basis in the rank and pay of Secretary.
Her tenure would be on co-terminus basis with the tenure of the President from the date of joining or till she ceases to function or until further order, whichever is earlier, an official release said shortly after Mukherjee assumed office.
Paul, who was with the Indian Information Service, had been with Mukherjee in his earlier positions as Deputy Chairman of Planning Commission, Commerce and External Affairs Minister in the early 1990s.
She later became advisor to Mukherjee when he had held the portfolios of Defence, External Affairs and Finance Minister from 2004 till he resigned to contest the Presidential election last month.
Paul also had a brief stint as Information Commissioner in the Central Information Commission in 2009.