Jodi McKay has stepped down as NSW Labor leader, saying it is the only way she believes the party can be reunited.
She addressed reporters in state parliament on Friday, saying some colleagues within the party had "never accepted" her although she would win a leadership ballot if it was was held today.
"I have always tried to build consensus within our party, but it is clear that although I was elected leader in a democratic process, there were those within our party who have never accepted that," she said.
Former leader Michael Daley and Chris Minns, who has twice before failed to secure the leadership, appearto be the only candidates to replace Ms McKay after Shadow Health Minister Ryan Park decided not to stand.
Jodi McKay's full statement here: