Michael Daley Vows To Remain Labor Leader Despite 'Train-Wreck' Election

Leader of the Opposition Michael Daley has conceded defeat in the NSW state election as the Coalition claimed its historic third consecutive victory.

Daley vowed to stay on as Labor leader despite losing the election, following a horror final week of campaigning.

Network 10's political commentator Sam Dastyari said the numbers were simply never there for the Labor party in the Sydney seats that mattered.

"This is a train-wreck of a result for the Labor party," Dastyari said, adding that he believes Daley will likely be dumped as state leader in the coming weeks.

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Network 10 political editor Peter van Onselen said "realistically" it was not certain Labor would keep Daley on as leader.

"This is a very bad result for Labor in NSW, there's no doubt about that," he said, adding that Daley had been expected by his party to do much better than his predecessor Luke Foley, who was forced to resign in November.

Dastyari said up until 10 days ago it still looked like the election would be neck-and-neck between the two major parties.

"Michael Daley had a disaster of a week, one of, if not the worst, last week of a campaign," he said.

Just before 10 pm on Saturday night, the Labor leader called Gladys Berejiklian to congratulate her on her victory, as she became the state's first elected female Premier.

Daley only became leader 134 days ago, and on Saturday night, conceded it wasn't long enough to cut through to the electorate.

Photo: AAP.

"But I can tell you that it is my intention to remain the leader of the party," he told the Labor Party faithful.

"We have a long and proud history in the Labor Party. Sometimes we win [elections], and sometimes we lose them," Daley said.

"But one thing never changes -- our passion, our belief and our mission to make NSW and Australia a better place, and that is what we will continue to do."

He also called for an improvement in politics in the state to end the continual erosion of public confidence in the political system.

"One of the concerns I have about the result tonight, being someone who believes in the political stability the two-party system does ... is that it really hasn't been all that great a night for the major parties.

Network 10's national affairs editor Hugh Riminton said the election showed there was a definite drift in voters from major to minor parties.

"We are seeing others, obviously the Shooters, Fishers and Farmers have made big ground at out in the bush, the Greens have also done quite well," Riminton said.

"There's a real sense of disillusionment in the electorate about the major parties".

As voting continues, it is not yet known whether the Coalition will form a majority or minority government.

Featured Image/With AAP.