NSW Labor's deputy leader Linda Burney is set to contest the federal seat of Barton at the upcoming election.
Ms Burney is expected to announce her decision to stand aside from the NSW seat of Canterbury on Tuesday, AAP understands.
If successful in her move, Ms Burney will become the first Aboriginal woman in the House of Representatives.
Under redrawn boundaries, the seat of Barton has gone from a marginal Liberal sear on a 0.3 per cent swing to a Labor seat on 5.4 per cent.
Ms Burney's switch will also necessitate a by-election in her south-western seat of Canterbury, and vacate NSW Labor's deputy opposition leader position.
Upper House MP Sophie Cotsis has been tipped to replace Ms Burney in her state seat, according to reports.
Ms Burney, 58, was the first indigenous Australian to serve in the NSW Parliament after she was elected in 2003.
