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Nussle, above, will succeed Robert Portman as head of the OMB.

WASHINGTON (CNN) - Former New York City Mayor Rudy Giuliani hailed President Bush's choice of his top Iowa advisor, Jim Nussle, to head the Office of Management and Budget Tuesday, calling it a "great choice.'"

“Jim and I have long shared a commitment to fiscal discipline, and I have every confidence he will continue to be an effective steward of taxpayers’ hard earned dollars in his new position," Giuliani said in a statement. “As our campaign continues to grow our team in Iowa, I am grateful to Jim for his early support and for his hard work in helping our team get started.”

Nussle, a former Republican congressman from Iowa, will succeed Robert Portman, who resigned from the post Tuesday.

The departure of Giuliani's top Iowa adviser comes less than two weeks after the campaign announced it would not compete in the state’s GOP straw poll this August, a non-binding early test of strength in the first caucus state. Soon after, Arizona Sen. John McCain also said he would not participate in the event.

– CNN Ticker Producer Alexander Mooney