Luke Foley's path to secure preselection for a lower house seat has been cleared after sitting Auburn member Barbara Perry stepped aside.
Ms Perry, who has held the safe western Sydney seat for Labor since 2001, was widely expected to pull out of the preselection race after Mr Foley was elevated to lead Labor on Monday.
He is currently an upper house MP but is trying to become Labor's Auburn candidate and switch to the lower house of parliament.
Ms Perry made the announcement on Wednesday in her electorate alongside Mr Foley, saying she had always wanted Mr Foley to succeed her in Auburn.
Shortly after Mr Foley was elected unopposed Labor leader, the party's national executive cancelled the Auburn preselection and called a new contest for January 17.
Ms Perry's decision comes a day after local councillor Hicham Zraika, Mr Foley's only other expected rival for Auburn, also pulled out of the preselection race.
Even before Mr Foley entered the field, the Auburn preselection race was shaping up to be very messy for Labor with Ms Perry accusing Mr Zraika of branch stacking.
Ms Perry officially endorsed Mr Foley as candidate for the seat on Tuesday by signing his nomination.
She denied she was being forced out of the seat, saying she had discussed the issue of succession with Mr Foley for a number of years.
But she admitted the decision was tainted with sadness and that she was bowing out earlier than she would've liked.
"It would have been selfish for me to have stood in the way of Luke," she told reporters.
"I believe I can leave this community no greater legacy than for it to be represented in parliament by the next premier."
Mr Foley claimed Ms Perry had "encouraged, harangued and cajoled" him over the past 18 months to succeed her in Auburn.
"I have to say it's happening a lot earlier than I'd ever dreamt of and perhaps earlier than Barbara had thought it would happen," he said.
NSW will go to the polls in March when a Mike Baird-led coalition is heavily tipped to be returned.
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