A Labor branch secretary of Cabramatta in Sydney's west has been suspended by the party after he was charged with child pornography offences.

Key points: Peter Hansen is alleged to have produced child pornography in the Philippines

Peter Hansen is alleged to have produced child pornography in the Philippines NSW Labor said it became aware of the charges on Monday

NSW Labor said it became aware of the charges on Monday Hansen will appear in the Supreme Court later this week

Peter Andrew Hansen has been in custody since his arrest at Sydney Airport in October after returning from Vietnam.

Australian Federal Police (AFP) officers conducted a search warrant at his Cabramatta home and he was charged with producing child pornography in the Philippines and importing child exploitation material.

The case has been subject to a suppression order, which has been lifted, and the 61-year-old will face a bail hearing in the NSW Supreme Court later this week.

Mr Hansen is fluent in Vietnamese and has worked as a compensation lawyer and an Asian studies lecturer.

He also previously provided legal counsel for the Transport Workers Union of Australia.

Mr Hansen, who has described himself as a "proud Cabramattan" moved to Vietnam around January, 2018.

The most recent post on his Facebook page celebrates the fact Mr Hansen received a Vietnamese driver's licence.

Peter Hansen moved to Vietnam early last year. ( Facebook: Peter Hansen )

He posted: "O blessed day! For which I have waited 27 years!"

In a statement, NSW Labor said it became aware of his upcoming court appearance yesterday and had suspended his party membership.

"NSW Labor became aware that Peter Hansen will appear before the Supreme Court on Thursday," it read.

"His membership has been suspended."

Labor leader Michael Daley said he found out about the allegations against Mr Hansen this morning but would not be drawn on the issue.

"It's before the court and I should be very careful what I say," he told reporters.

"All I know is what I read in the paper today, which is that his party membership has been revoked."

Independent candidate for the seat, Dai Le, called on Opposition Leader Michael Daley to ask Cabramatta MP Nick Lalich and Fairfield MP Guy Zangari to step aside "while our community deals with this horrible news".

"We deserve better representations. Our community deserve more than what the major political parties are willing to give us," she said.

Dai Le stood for the Liberal Party in 2008 and 2011.

The Catholic Church has confirmed that Mr Hansen was a priest who ministered in the Archdiocese of Melbourne until he resigned from the ministry in 2011.