NSW State Development Minister Ian Macdonald is believed to have resigned over matters relating to his acceptance of airline flight upgrades, taking the government's one day loss of ministers to two.
The government is yet to confirm the speculation but media outlets are saying Mr Macdonald has quit, after juvenile justice minister Graham West announced his resignation earlier today.
It's believed further information has come to light about a trip Mr Macdonald made to Dubai in 2008.
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Mr Macdonald has been under fire this week for failing to declare business class upgrades on a Emirates flight.
NSW Premier Kristina Keneally had backed her minister, saying the inclusion of seat upgrades in the parliamentary register of pecuniary interests was a "grey area".
But she also directed the director-general of her department to investigate whether Mr Macdonald's trip was within the authorisation given by her predecessor.
On Wednesday, Mr Macdonald said he had paid for economy flights as part of personal holiday to Italy and Dubai for himself and his wife.
Fairfax media on Friday said it obtained documents using freedom of information laws showing that $2815.50 in taxpayer dollars were paid for an airfare to Dubai.
Mr Macdonald had disputed the documents, it said.
The loss of Mr Macdonald would take the tally of fallen ministers in the state government to three over the past two weeks.
David Campbell resigned as transport minister in May after the Seven Network aired footage of him leaving a gay sex club in Sydney.
Mr West told parliament on Friday he was stepping down to pursue a career outside of politics after the 2011 March state election.
He gave personal reasons for resigning, saying he wanted more time with his family, and to return to work in the charity sector.
The resignations leave the Keneally government in a vulnerable position.
On June 19, it faces a by-election in Penrith after MP Karyn Paluzzano resigned in May following a corruption inquiry.
Opposition Leader Barry O'Farrell has said Ms Keneally had failed her promise, when she took over seven months ago, to restore trust in and stability to the government.
"Labor is focussed on itself again, not on the families of NSW," he told Seven.
