Haddin was unveiled as the new Blues coach on Wednesday morning, after NSW officials made the call to sack veteran Shipperd in January.
The former Test wicketkeeper will take over all state duties, but Cricket NSW has confirmed Haddin's remit will not include the Sydney Sixers or Thunder in the BBL.
Haddin's appointment continues his rise through coaching ranks, having previously served as an assistant in Australian national set ups.
NSW last week won their first men's domestic trophy in five years when they beat Tasmania in the 50-over cup, but last lifted the Sheffield Shield in 2019-20.
The Blues won just two Shield matches this season, and have just 11 victories since they last appeared in a final in 2020-21.
"NSW cricket has been an integral part of my life and to rejoin the fold as Blues head coach is a proud moment for myself and my family," Haddin said.
"Wearing the baggy blue was incredibly special and gave me some of the greatest memories of my career.
"I am looking forward to working with our current crop of talented players to bring back an aura to NSW cricket and to have a team with a formidable, distinctive style of play we can all be proud of."
Haddin's appointment came after NSW's former Test spinner Stephen O'Keefe took further aim at the state over its handling of the issue.
After labelling Shipperd's axing a "disgrace" last month, O'Keefe claimed on SEN on Tuesday that assistants Ali de Winter and Shawn Bradstreet were told before play that day they would not continue on next summer.
Shipperd has also made his frustration clear, having stated he was "incredibly disappointed" not to see out his contract after also guiding the Sixers to a seventh BBL final under his 11-year watch this summer.
Fox Sports also reported on Tuesday that the veteran coach had paraded the Dean Jones Trophy for the one-day cup outside a room where Haddin was interviewing for the top job.
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