Former NSW premier Kristina Keneally was to be dispatched to Washington as Joe Hockey's replacement by Bill Shorten if Labor had won the May 18 federal election.

It can be revealed Mr Shorten and Senator Keneally hatched a plan for the now-home affairs spokeswoman to become Australia's next ambassador to the United States as reward for contesting the Bennelong byelection in December 2017.

Bill Shorten and Kristina Keneally hatched a plan for the now-home affairs spokeswoman to become Australia's next Ambassador to the US. Credit:Alex Ellinghausen

The deal, which was kept secret from all but a handful of Mr Shorten's inner-circle, was to be honoured even following Senator Keneally's ascension to the upper house, replacing Sam Dastyari in 2018.

Several sources familiar with the deal have told The Age and The Sydney Morning Herald Mr Shorten believed Senator Keneally was a "top fit" for the job and the position was discussed after he encouraged her to "run hard" against Liberal MP John Alexander after he resigned during the dual citizenship saga which plagued the last Parliament.