The Labor MPs In Line To Replace Luke Foley As NSW Leader

With Luke Foley stepping down as NSW Labor leader, attention has turned to who will replace him -- and potentially become the next state premier.

Foley, the Member for Auburn, stepped down from the state party leadership on Thursday after a journalist claimed he put his hand inside her dress and underpants at a Christmas party in Sydney in 2016.

Foley has denied the allegations and said he will commence defamation proceedings in federal court.

READ MORE: 'I'm Resigning': Luke Foley Quits But Denies Groping Allegations

Foley was in line to become the next state premier, with a September poll showing his Labor party was neck-and-neck with the Liberal government.

With Foley vacating the leadership, but staying in parliament and returning to the backbench, speculation is mounting around who may succeed him as Labor and opposition leader.

Michael Daley and Jodi McKay have been tipped as possible replacements for NSW Opposition Leader Luke Foley (AAP Image/Joel Carrett)

Many are tipping it could be an easy and logical transition, with Labor deputy leader Michael Daley expected to take the job.

Daley, the Member for Maroubra and Labor's spokesman on planning, infrastructure, gaming and racing, is expected to have enough support amongst his party to become opposition leader.

Labor sources have told 10 News First reporter Catalina Florez that Foley's deputy has the numbers to replace him.

Daley joined the parliament in 2005. He was the former Minister for Finance, Police and Roads when Labor was last in government in NSW, between 2008 and 2011. He has also acted as shadow treasurer and shadow police minister while in opposition.

A former lawyer, deputy mayor of Randwick city council and president of the Randwick rugby club,  Daley is married with four children.

Daley was at the centre of an ugly incident in 2012 when he was ejected from the parliament chamber after allegations he was drunk. He later admitted he "had a few drinks" but denied being drunk.

Others have raised the possibility of water spokesman Chris Minns taking the leadership.

The 39-year-old Member for Kogarah only joined the parliament in 2015, but some have tipped him for a big future in the party. He is a former member of Hurstville city council.

Also in the mix is shadow transport and roads minister Jodi McKay.

She has been in the parliament as Member for Strathfield only since 2015, but also represented the electorate of Newcastle between 2007 and 2011.

She has previously held ministerial positions responsible for tourism, science, women, and the Hunter region.

The NSW Labor party is expected to hold an emergency meeting as soon as Friday to select a new leader.