The new Opposition Leader in New South Wales, Luke Foley, has taken the unusual step of elevating someone to his shadow cabinet who has not yet secured a seat in Parliament.

Former Newcastle MP Jodi McKay will become Labor's planning spokesperson as she battles to win the seat of Strathfield in Sydney's inner west.

Mr Foley said his potential rival for the seat of Auburn, Barbara Perry, has asked not to be considered for the frontbench.

Deputy Labor leader Linda Burney will take over Ms Perry's portfolios of ageing, disability services, mental health and heritage.

Former Newcastle MP Jodi McKay has been elevated to Labor's shadow cabinet. ( ABC TV )

Mr Foley said Ms McKay demonstrated at the Independent Commission Against Corruption (ICAC) that she was a politician who could not be bought by developers.

In 2014, Labor powerbrokers admitted to the ICAC they were involved in a smear campaign against Ms McKay at the 2011 election.

She lost the seat of Newcastle to the Liberal Party's Tim Owen, who resigned in August last year after the ICAC was told he accepted illegal donations from developers.