The federal member for Perth, Alannah MacTiernan, will not recontest the seat at the next election, saying it is time to pass the baton to someone who can build a bigger role in Labor over the next decade.

Key points: Alannah MacTiernan held federal seat of Perth just over two years

Alannah MacTiernan held federal seat of Perth just over two years Rose to prominence as senior minister in two WA Labor governments

Rose to prominence as senior minister in two WA Labor governments Announcement of resignation sparked speculation of a return to state politics

Ms MacTiernan confirmed her decision on Friday, barely more than two years after she first won the seat, and has not ruled out a return to state politics.

"If I was at the beginning of my political career I could afford to be more patient in this regard," she said in a post on her Facebook page.

"I believe it is more sensible for me to pass on the baton to someone who can build a bigger role over the next decade.

"I know there are quality candidates waiting in the wings - and I know we can and will win the confidence of the people of Perth at the next election."

Ms MacTiernan rose to prominence as a senior minister in both the Gallop and Carpenter state governments before resigning in 2010 to shift to federal politics.

She unsuccessfully contested the seat of Canning in 2010 before winning Perth in 2013.

Return to state politics not ruled out

Ms MacTiernan said any suggestion she had quit federal politics to seek to take over as state leader was wrong.

"I am completely and utterly supporting Mark McGowan, I think he is doing a bloody fabulous job," she told Macquarie Radio.

"People are seeing they have got a real alternative and my decision to not recontest federal Perth has nothing to do with that.

"My decision was purely based on making a determination whether or not I wanted to stay on doing this job at a federal level, it has nothing to do with any alternative plans."

But Ms MacTiernan admitted she could not rule out returning to state politics in some form.

"I have learnt from my past experiences never to say never and things do happen ... I would not pretend I have stopped being interested in politics," she said.

"Either way, I will be campaigning for Mark McGowan all the way, supporting him to be the next Premier of WA."

Ms MacTiernan's announcement sparked speculation from Labor insiders that she could be a good fit for either the state seats of Mt Lawley or Perth, which are both held by the Liberals.

Political analyst Peter Kennedy said Ms MacTiernan would be a good asset for the state party.

"It would be a boost to state Labor's stocks if she decided to put her hand up for the state parliamentary party, and it would give the state party a bit of depth that all parties sorely need," he said.

"They need depth, they need experience and they need energy.

"Alannah MacTiernan can provide all of that.

"Should she decide to make herself available, I can imagine the Labor Party would be very keen to get her into the Perth seat, and that she would be a very very strong candidate and almost be an odds-on certainty to win it."

MacTiernan's ambitions unfulfilled: political analyst

Political analyst William Bowe said there was a lot of subtext to be read.

"I think she feels that her ambitions aren't really being fulfilled in her role," he said.

"Either because she hasn't been promoted quickly enough or because she's not confident about Labor's election prospects."

He said there would be a lot of concern about the way state electoral boundaries have been redrawn.

"There's a lot of seats that Labor needs to win," he said.

"Mark McGowan is actually a fairly popular Opposition Leader, but there have been rumblings in the party that he is not raising enough money, and a general sense that he would not quite be able to take Labor the extra mile they need to win.

"There are people who are trying to hatch schemes to get a high-profile person in to sort of do what Campbell Newman did in Queensland, and brush their way into the premiership with an election victory."

ALP state secretary Patrick Gorman praised Ms MacTiernan.

"Alannah has been a fighter for Labor causes at local, state and federal levels," Mr Gorman said.

"The party is incredibly grateful for the number of times she has put herself forward for us and our members.

"I'm sure she'll continue to make a contribution, not just at the federal election, but across the party into the future."