Mr Lloyd had been chosen by the council’s appointments committee, but Ms Johnstone (Con) then phoned him to indicate she was unhappy with the appointment.
A row ensued over her intervention and she later resigned, with former leader Keith Walters (Con) returning as acting leader.
But Cambridgeshire today announced that Mr Lloyd would take the post after all.
Durham CC leader Albert Nugent (Lab) said it was “no surprise that Cambridgeshire have renewed their efforts to secure his services”.
He said he recognised the uncertainty caused by Durham’s reorganisation into a county unitary council, and the government’s expectation that all new chief executives will be appointed in open competition.
Mr Lloyd became Durham’s chief executive in 2005. He said: “I am proud of what I have achieved in Durham and my goal now is to make Cambridgeshire one of the top-performing county councils in the country.”