A second Labor MP has quit the Shadow Cabinet in as many days.
Chris Minns on Wednesday morning announced he was resigning after a “dirt dossier” on him was distributed.
Minns, who serves as Shadow Transport Minister, said he was disappointed the documents were distributed by the Deputy Leader of the Labor Party’s office.
Stream your local 7NEWS free on 7plus 
“In the last 24 hours I have not received any communication or explanation from the Leader, or the Deputy Leader as to how or why this was done,” he said.
“The public wants a contest of ideas and a vision to improve the lives of working families, not negative politics.”
The resignation follows the circulation of a file titled “Why Chris Minns and Jamie Clements can never run the NSW Labor Party”.
That came amid reports Minns was one of the contenders for the state’s Labor party leadership.
He’s the second senior Labor MP to step down from the Shadow Cabinet in as many days.
Walt Secord on Tuesday did the same.
Secord, the Shadow Treasurer, said: “I can no longer serve in a Jodi McKay-led shadow ministry.”
He also said he’d been pushed to the brink following the so-called “dirt dossier”.
Secord described the distribution of the document as “absolutely disgusting” and “completely unacceptable”.
Half an hour before his resignation, McKay held a press conference where she reaffirmed she would remain the party’s leader.
“Today I confirm that I am the leader of the Labor Party, that no one has challenged me, no one has asked me to stand aside,” she told reporters on Tuesday.
Leadership speculation reached fever pitch after the party’s poor showing in the Upper Hunter by-election on Saturday.
The Nationals have held the seat for decades, but Labor was expected to gain some traction in the region.
They ultimately failed to connect with their voter base, with votes instead going to One Nation and an Independent backed by former Prime Minister Malcolm Turnbull.