One of Mr Yule's political adversaries said even if the rule change allowed him to seek a third term, the mayor should give up the national role to focus on governing the district.
Councillor Wayne Bradshaw, who ran against Mr Yule in last year's mayoral elections, labelled him a "part-time mayor" and said his focus outside the region was having a social, economic and community impact on Hawke's Bay.
Mr Yule rejected the criticism, saying his LGNZ role opened doors that enabled him to have an influence at a national level, which benefited Hastings and the region.
"I would argue I have very good connections with a lot of senior ministers, officials and MPs that are very useful to our region," he said.
An example was a meeting with Associate Health Minister Peter Dunne he had scheduled in Wellington on Monday where, as LGNZ president, he would discuss the controversial issue of the sale of psychoactive substances.
"While doing that in my national role, it's a huge issue locally that I have an ability to have some impact on."
He said he had been "completely transparent about my roles and my responsibilities" and, while part-way through his second term as LGNZ president, had won re-election as Hastings mayor with an increased majority over his closest rival compared to the previous election in 2010.
LGNZ provides advocacy and support services for the country's city, district and regional councils.
Mr Yule said the organisation's rules, including the time limit for presidents, were due for an overhaul.
"We are modernising and completely changing Local Government New Zealand to make it fit for purpose and these rule changes are part of that. These rules haven't been looked at for years."