Labor is hoping the uncertainty surrounding the leadership of the NSW party won't impact on the federal campaign for Bill Shorten to become prime minister.
Michael Daley on Monday quit as NSW Labor leader following the party's poor showing in the state election but vowed to contest a leadership ballot to be held after the federal poll due in May.
"To do otherwise would be an unnecessary distraction from the task of electing a Shorten Labor government in a few weeks' time," Mr Daley said in a statement.
Deputy leader Penny Sharpe will fill in as interim leader until the ballot.
NSW Labor said in an official statement the leadership ballot was being delayed because "the party is on official campaign footing and is committed to the task of electing a Shorten Labor government over the next seven weeks."
Ms Sharpe on Monday said she was looking forward to campaigning with Mr Shorten.
"I am looking so forward to standing next to Bill Shorten and making a case for Labor and getting rid of Scott Morrison and the Liberal government," she told reporters.
Mr Daley denied his decision to renominate for the leadership could hurt federal Labor.
"The fact that I'm standing aside as leader today removes the distraction," he said.
Mr Daley's final week of the campaign involved two major blunders.
A video from September emerged of Mr Daley telling a pub forum that Asian migrants were taking local jobs and he then stumbled on key numbers behind his education policies during a live television debate.