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Michael Daley Quits As NSW Labor Leader

Following this weekend's state election, NSW Opposition leader Michael Daley has announced he will step down until after the upcoming federal election.

On Monday morning the NSW Labor Party announced that it would hold a leadership ballot following the federal election, after the party lost the state election over the weekend.

Daley, who was criticised for his performance throughout the campaign, later announced he would be stepping down as leader until that ballot was held, but would again stand for the leadership.

“In the meantime, the interim Leader will be my very capable Deputy, Penny Sharpe," Daley said in a statement on Monday afternoon.

“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," he said in a statement.

“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.”

The announcement comes just two days after Daley vowed to stay on as Labor leader despite losing the election, following a horror final week of campaigning.

"But I can tell you that it is my intention to remain the leader of the party," he said in his concession speech. 

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

READ MORE: Why Scott Morrison Shouldn't Be Too Excited About The NSW Election

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Daley came under intense scrutiny last week over his comments in a 2018 video in which he said young Sydneysiders were leaving and being replaced by workers from Asia.

"Our young children will flee and who are they being replaced with? They are being replaced by young people from typically Asia with PhDs," he said in the video while speaking at an event in Wentworth Falls, in the Blue Mountains.

"So there's a transformation happening in Sydney now where our kids are moving out and foreigners are moving in and taking their jobs".

Speaking to reporters on Monday afternoon, Daley again addressed the comments.

"I was the first to admit that those comments were very poorly worded. I could have chosen my words better," he said.

"I've apologised unreservedly apologised for those comments."

Daley only became leader 136 days ago after the shock resignation of former leader Luke Foley.

Just before 10pm on Saturday night, he called Gladys Berejiklian to congratulate her on the victory which made her the state's first elected female Premier.

More to come.