Northern Territory Labor MP Michael Gunner will run for the party leadership against the incumbent Delia Lawrie after she declined to a request from a majority of her parliamentary colleagues to resign.
The fourth generation Territorian didn't go so far as to call the opposition leader delusional, but the Member for Fannie Bay repeatedly stressed five of Labor's eight caucus members asked Ms Lawrie to resign, and she declined.
Labor now begins the month-long process of a leadership ballot.
Ms Lawrie's hold on the top job has become increasingly untenable, even as she told reporters she would not step down as leader in the interim and stressed she was the best person to lead Labor to next year's territory election.
Mr Gunner said he held the majority of his colleagues' votes and said they didn't believe they could be a credible alternative to the ruling Country Liberals government with Ms Lawrie at the helm.
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He thanked his colleagues for their "dignity and professionalism" over a "difficult" past fortnight as they digested a damning Supreme Court finding handed down against Ms Lawrie.
Two weeks ago, Justice Stephen Southwood found Ms Lawrie and her lawyers lied and plotted to undermine and discredit an inquiry examining a land deal with Unions NT.
The justice dismissed her appeal to quash the findings of Commissioner John Lawler, whose inquiry last year found she had acted unfairly and with bias when she bypassed the open tenders process to hand an historic Darwin site to Unions NT for 10 years at no rent the day before entering the caretaker period for the August 2012 election.
Ms Lawrie has rejected the findings, maintaining the decision was the right one to save the site from developers, and is still considering whether or not to appeal.
"We are going to have to find a mature way through this," Mr Gunner said.
He appeared to indicate he would accept Ms Lawrie as leader if a majority of the party membership voted for her to remain.
"Once this ballot is over, it's over," Mr Gunner said, while voicing concerns the challenge over the coming month could become "a circus" and a distraction from holding the government to account.
Mr Gunner said that as a deputy chief minister and treasurer, and as opposition leader, Ms Lawrie had been "hardworking and passionate".
"Territorians want someone considered, pragmatic and practical, and who puts the Territory first," he said.
Ms Lawrie said she had "lots to offer" the party as leader.
"I have got the experience, the credibility, the strength and the networks to take on the mammoth task of taking down a government."
Asked if she was putting her own interests above the party, she said party members had told her to stand strong.
