Controversial construction union boss John Setka's membership of the Labor Party has come to an end, after he dropped his legal challenge against an expulsion attempt.

Key points: Anthony Albanese has wanted to expel John Setka from Labor for four months

Anthony Albanese has wanted to expel John Setka from Labor for four months Mr Setka fought the expulsion in the courts but on Wednesday withdrew an appeal, allowing Labor to expel him

Mr Setka fought the expulsion in the courts but on Wednesday withdrew an appeal, allowing Labor to expel him Mr Albanese said Mr Setka's values were inconsistent with the Labor Party

Federal Labor leader Anthony Albanese had wanted the Victorian CFMEU secretary kicked out of the party after a series of scandals.

But Mr Setka launched legal action in the Victorian courts that temporarily prevented him from being expelled.

Speaking in Canberra, Mr Albanese announced the union boss had dropped further legal action, which allowed the party to complete the process of expelling him.

"Today John Setka has withdrawn his appeal to that decision and John Setka has now been removed as a member of the Australian Labor Party," the Opposition Leader said.

"I think that this is a good outcome for the Australian Labor Party that allows us to draw the line under these issues."

Mr Setka offered a differing account to Mr Albanese in a written statement issued 30 minutes after the Opposition Leader spoke.

The union boss said he had resigned as a Labor member after 15 years with the party, rather than being expelled.

"This is a personal decision I have made," Mr Setka said.

"It will not affect the CFMEU Vic/Tas branch's ability to advocate within the Labor Party for better policies on behalf of CFMEU members and working Australians.

"I can no longer stand by and watch Anthony Albanese trash the traditional values of the Labor Party and the union movement."

A statement issued by Mr Setka's lawyers said any assertion that he was expelled from the party was "wrong."

"The National Executive meeting to consider the charges brought by [Labor frontbencher] Mark Dreyfus under the Victorian rules was to take place this Friday, October 25," lawyer Andrew George said.

"Mr Setka wanted a short adjournment of the meeting as he is in Adelaide at a national conference this Friday, but the national executive refused. Given that decision it is our view that the ALP was not intending to provide him with procedural fairness.

"After careful consideration, Mr Setka made the decision to resign from the Australian Labor Party for reasons outlined in his media release earlier today."

Hours after the news broke, Mr Albanese appeared on ABC's 7.30 program, where he said Mr Setka's values "were not the same as the values held by Australian Labor".

The Labor leader added: "Australian Labor respects women. Australian Labor wants an industrial relations system that is orderly and treats people with respect.

"And John Setka has not only brought the Labor Party into disrepute, but in terms of the union movement, I think that the union movement needs to find strong advocates and I think this is … a good outcome for Labor.

"It's one that I asked for as one of my first actions as leader, and today it was achieved."

When asked whether Labor would continue taking money from the CFMEU Victorian and Tasmanian branches, Mr Setka plans to continue running, Mr Albanese said: "We want to represent working people … we don't shy away from the connections that we have with the trade union movement.

"Part of [Labor's] organisational structure is the affiliation of the unions.

"I support unions having input into the Labor Party because what that does is make sure that we can keep in touch with what's happening in workplaces."

Delays removing union boss from Labor

In June, the ALP wrote to Mr Setka to advise him of its plans to expel him.

Mr Albanese repeatedly raised his concerns about comments Mr Setka reportedly made about anti-family violence campaigner Rosie Batty.

Mr Setka sought a court injunction to prevent his expulsion, but the Victorian Supreme Court rejected his claim in August.

"Over a long period of time, through his actions he demonstrated values that were not consistent with the values the Australian Labor Party holds dear," Mr Albanese said.

"The fact that he has been convicted of breaching a family violence order and the fact that he was also convicted and pleaded guilty to harassment indicates that's the case."

In June, Mr Setka was ordered to attend a behavioural change program and placed under a good behaviour order after pleading guilty to harassing his wife, Emma Walters, via text messages.

Mr Setka denies disparaging Ms Batty and defied calls for him to stand down from the union in June, arguing only his members could remove him from the post.

His case has split the labour movement, with many unions backing him while others called for him to resign.