Deputy NSW Labor leader Linda Burney is set to make Australian political history by becoming the first Indigenous woman to hold a seat in the federal House of Representatives.

After weeks of speculation Ms Burney – a Wiradjuri woman and member for the state seat of Canterbury – has confirmed she will seek preselection for the seat of Barton at this year's federal election.

"It's about being able to affect people's lives at a federal level": Linda Burney with Bill Shorten. Credit:Nick Moir

A dozen Labor hopefuls have indicated they will put their hand up in a rank and file preselection for Barton.

But in a controversial move, the party is likely to announce Labor's national executive will take over the process to ensure Ms Burney is the candidate.