Update
Michael Daley has accepted the inevitable and fallen on his sword.
Mr Daley announced on Tuesday he would not contest the ballot for leader of the state parliamentary Labor Party, which will be held after the federal election.
Mr Daley was given no chance of being re-elected to the position after his blunders in the last week of the election campaign, but as late as yesterday intended trying to keep the job.
In a statement on Tuesday, Mr Daley said he made the decision after consulting colleagues and his family.
He said he did not wish to be a distraction for the federal campaign and that after the state election loss, he wanted the NSW party to have clear air for the selection of a new leader.
"I have always put the interests of the party first and in making this decision, continue to do so," he said.
"I intend to remain the Member for Maroubra. I have spoken to the Interim Leader, Penny Sharpe and have advised her that I will be taking leave over the next few weeks to spend time with my family."
After Mr Daley's decision to not contest the ballot for leader, attention has turned to the other possible contenders.
The two frontrunners are MPs Jodi McKay and Chris Minns.
CHRIS MINNS
Mr Minns won the very safe Labor seat of Kogarah at the age of 35 in the 2015 election.
In his four years in parliament, he has held one shadow portfolio - water. While the portfolio is considered low-profile, a string of water management issues, including the fish kills in the Darling River near Menindee over Christmas, has kept him busy and his name in the press.
A former president of NSW Young Labor, he worked as a staffer for former ministers Carl Scully and John Robertson.
He became a Hurstville City councillor and later served as deputy mayor. He worked his way up to assistant secretary of the NSW Labor Party.
In his maiden speech to Parliament in 2015 he raised the ire of powerful unions by calling for the party to change its relationship with organised labour.
In November 2018, after Luke Foley's resignation, Mr Minns made a bid for the Labor leadership, saying the party needed a break from the past. He was defeated 33 votes to 12 in the caucus ballot.
In the latest election, he went into damage control after a video of Mr Daley's racist remarks emerged, directly sending heartfelt messages to voters of Kogarah. He suffered a swing of 3.7 per cent against Labor.
He grew up in the St George area and is raising his two boys with his wife Anna in Carlton.
JODI MCKAY
Ms McKay has twice the parliamentary experience of her Labor colleague Mr Minns. She worked as a journalist before winning the seat of Newcastle in 2007 and entering parliament at the age of 37.
She sat on a handful of committees before she became the minister of small business, tourism and science during the last four tumultuous years of the Labor government.
She lost her seat during the 2011 Labor wipeout, suffering a swing of 3.8 per cent. She then held senior roles at Family Planning NSW, Australian Science Innovations and Epilepsy Action Australia.
She said she would never return to politics after the Independent Commission Against Corruption heard evidence that she had been undermined and lost her seat after members of her own party orchestrated a campaign against her, including disgraced powerbroker Joe Tripodi.
She was lured back by Labor to stand for the swing seat of Strathfield in the 2015 election, which she won.
She has since become one of the opposition's more effective frontbenchers, holding the shadow portfolios of Transport, as well as, Roads, Maritime and Freight.
As one of the most senior women in shadow cabinet, her name has been thrown around during earlier leadership contests.
In the most recent election, she enjoyed a 3.3 per cent swing in her seat - despite concerns that Mr Daley's anti-immigration remarks would hurt the Asian vote - cementing her as a frontrunner in the leadership ballot.
Earlier
Michael Daley today announced he will stand aside as NSW Opposition Leader until a leadership ballot takes place after the federal election in May.
Mr Daley said he would recontest the Labor leadership when nominations were called.
Kogarah MP Chris Minns is also expected to seek the job.
Mr Daley said a ballot for leadership of the NSW State Parliamentary Labor Party (SPLP), which requires a vote of the rank and file membership, would only begin once the federal election was held.
"In the meantime, the interim leader will be my very capable deputy, Penny Sharpe," he said.
Mr Daley said the caucus rules provided that under normal circumstances an interim leader is appointed until a ballot is called to elect the leader.
This process had been interrupted by virtue of the fact that a federal election would be held soon.
"Notwithstanding that, the party head office has decided to delay the ballot. It is in the spirit of the rules to take this course.
"This is the right and proper thing to do. It is in keeping with the spirit of the State Labor Party's caucus rules requiring a rank and file election of the leader.
"To do otherwise would be an unnecessary distraction from the task of electing a Shorten Labor government in a few weeks' time.
"I will be contesting the leadership when nominations are called for that position."
Earlier
Kogarah MP Chris Minns will get a second chance to become Labor leader in NSW after the federal election in May.
Labor Party officials have delayed a ballot, possibly to avoid a picture of disunity.
Michael Daley is expected to be dumped, with Mr Minns and Jodi McKay the only names mentioned so far as contenders to replace him.
"The NSW Labor Party Officers have resolved to hold the rank-and-file ballot for Leader of the NSW Parliamentary Party, after the 2019 Federal Election," a party statement said.
"The NSW Labor Party is on official campaign footing and is committed to the task of electing a Shorten Labor Government over the next seven weeks.
"The Party has directed the caucus to open nominations after the Federal Election and members of the State Parliamentary Labor Party (SPLP) are directed to refrain from commenting on, or campaigning for the SPLP leadership prior to the Federal Election."
Mr Minns, who was Labor's spokesman on water, contested the leadership with Mr Daley after Luke Foley resigned in November last year.
Mr Minns lost the caucus vote 33-12.
Over the weekend Mr Minns did not rule out challenging Mr Daley.
"I certainly won't rule out being a candidate for the leadership," Mr Minns said on Sunday. "After three election losses the party has to reassess what we are offering the people of NSW."
At the time of last year's caucus vote Mr Minns said he wanted to "unite the party, provide a bold policy platform and convince the voters of this state to kick out the government."
