Frontbencher Jodi McKay has confirmed she will run for the leadership of the NSW Labor party against right faction colleague Chris Minns.
Mr Minns, the member for Kogarah, threw his hat in the ring on Thursday, arguing he would be the "new generation" leader Labor needed after three successive state election losses.
But Ms McKay announced on Friday morning she believes she has the best chance of leading the ALP back into government.
"Right now, I believe I can beat Gladys Berejiklian," the member for Strathfield told reporters in Homebush West.
"Right now, I believe I can win the 2023 election."
She promised to make education a key priority if elected.
Ms McKay described Mr Minns as "very talented" and had a bright future in the party.
"But I just believe that at this time I am the best person to lead the Labor party," she said.
"This is about a contest of ideas. There's going to some long conversations had within our party over the next month."
Port Stephens MP Kate Washington had also been tipped to enter the race, but confirmed on Thursday she will not run and instead support Ms McKay's bid.
Nominations for the leadership close at 2pm on Friday.
Interim leader Penny Sharpe has held the top job since former leader Michael Daley stepped down following Labor's resounding defeat in the March state election.
A leadership spill is required following a defeat under the party's rule.
A ballot of both the caucus and rank-and-file members will be held with both blocks given equal weight.
Australian Associated Press