Former NSW Labor leader Luke Foley will not contest the seat of Auburn after allegations emerged he indecently touched an ABC journalist.
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Mr Foley announced on Thursday he would resign as leader to sit on the backbench and pursue defamation claims after he was accused of touching journalist Ashleigh Raper inappropriately at a 2016 Christmas Party.
But on Friday evening, as the party considered moves to disendorse him, Mr Foley wrote to its general secretary saying he would run out his term and not seek re-election.
Mr Foley said he'd had time to reflect and talk to friends and colleagues, and had decided to resign his endorsement for the seat of Auburn.
"The Party must focus on the election which is at hand. I do not want to be a distraction," his letter reads.
"I will continue to work for the people of my electorate as Member for Auburn until the election."
The ALP released a statement shortly after confirming the party had accepted his resignation.
Australian Associated Press