Labor factional leader Don Farrell has stepped aside from the top spot on the party's South Australian Senate ticket in favour of Finance Minister Penny Wong.

Senator Farrell's decision, which he announced in an interview on Adelaide radio this morning, is designed to avert a divisive internal brawl.

Government figures were infuriated by the South Australian decision last weekend to give top billing to Senator Farrell, a low-profile parliamentary secretary known mostly for his role in the leadership coup that installed Julia Gillard as Prime Minister.

The Leader of the House, Anthony Albanese, had threatened to ask the ALP national executive to overturn the decision.