John Barilaro joins Gladys Berejiklian at exit door as NSW prepares to reopen from COVID lockdown

John Barilaro will formally step down as Nationals leader and Deputy Premier on Wednesday, and then quit State Parliament, after conceding he had "lost the fight" to continue his political career.

The 49-year-old cited the stress of media scrutiny and an ongoing defamation case he has brought against entertainer Friendlyjordies as among the major reasons behind his abrupt resignation

The Queanbeyan-based politician has ruled out following state Coalition colleague Andrew Constance into federal politics, confirming he won't run for the seat of Eden-Monaro.

His resignation means NSW will have two new leaders as the state prepares to reopen next week from its long COVID lockdown.

Treasurer Dominic Perrottet remains the favourite to succeed Ms Berejiklian as NSW premier, but he will face a challenge from Planning Minister Rob Stokes when the Liberal party room meets on Tuesday to select a new leader.

Water Minister Melinda Pavey has nominated to replace Mr Barilaro as Nationals leader, while her cabinet colleague Paul Toole was considering a run at the leadership.

The NSW Liberal-National government is set for major overhaul in the wake of Ms Berejiklian's bombshell announcement last Friday that she would resign as premier and quit politics after becoming the target of an ICAC investigation.

In a potential further twist, Ms Berejiklian has reportedly been encouraged by federal Liberals to consider contesting Tony Abbott's old seat of Warringah, which he lost to independent Zali Steggall at the 2019 election.

Mr Barilaro told reporters in Sydney that he had been planning to end his decade-long career in state parliament for some time. Ms Berejiklian's shock and sudden departure hadn't played "any" part in his decision to leave politics, he said, although it had influenced the timing.

He said with a new cabinet due to be sworn in later this week, it wouldn't have been appropriate to remain in his position only to resign as planned shortly after.

"I have enjoyed every single day of it [career in politics]," he said.

"But it has taken a toll. It is tough on anybody in public life, to continue in this role under so much scrutiny."

Mr Barilaro has proven a colourful, controversial and at times divisive figure in NSW politics. He threatened to blow up the NSW Coalition government last year amid disagreement over a koala protection policy, before taking mental health leave in the fallout.

He was the architect of a controversial bill to protect brumbies in Kosciuszko National Park.

Mr Barilaro listed the delivery of new local schools, including in Googong, Jerrabomberra and Bungendore, as among his proudest achievements as Monaro MP.

He has backed NSW Nationals MLC Bronwyn Taylor to replace him in the seat if she wanted to, saying the Nimmitabel property owner was already the "unofficial member for Monaro".

Mr Barilaro, who endorsed Mr Perrottet to be the next premier, was praised by his Liberal and National colleagues as a tireless advocate for regional NSW who never backed down from a political fight.

Queanbeyan-Palerang Regional Council Mayor and Regional Cities NSW chair Tim Overall said he was "shocked and disappointed' to learn of Mr Barilaro's departure.

"John is a person who is absolutely committed to succeeding and delivering on his promises," he said.

"I don't say that lightly, because in politics a lot of statements are made and not carried through. But John has carried through significantly with his commitments."

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Mr Barilaro's announcement via a statement early on Monday morning sparked immediate speculation that he was again eyeing a run at Federal Parliament.

He publicly toyed with the idea of running as the Nationals candidate in last year's byelection for the federal seat of Eden-Monaro, which overlaps parts of his state electorate.

Mr Constance also put up his hand to run in Eden-Monaro before he withdrew his candidacy after Mr Barilaro denigrated him in the press.

Mr Constance, the NSW Transport Minister, on Sunday announced he would quit state politics to contest the federal seat of Gilmore.

Mr Barilaro immediately ruled out another tilt at federal politics at his press conference on Monday.

"I'm going to be a keen watcher of politics, but not a participant," he said.

The tumultuous past week has left the NSW government, which is already in minority, staring down three by-elections: in Ms Berejklian's seat of Willoughby, Mr Constance's seat of Bega and in Monaro.

ACT Chief Minister Andrew Barr said despite their "moments over the years", he and Mr Barilaro had been able to work constructively on cross-border issues.

Mr Barr wished Mr Barilaro well for his post-politics career, which he jokingly doubted would be as a sewerage detective - a reference to the brief spat between the pair after COVID-19 fragments were detected on the south coast in the early stages of Canberra's outbreak.

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