Kristina Keneally has missed out on a frontbench spot after the departure of Labor right winger Tim Hammond, with the Western Australia backbencher Madeleine King slated for promotion instead.

The Labor right faction backed King, a relative political newcomer, on Monday night after factional powerbrokers initially made it known they wanted to elevate the South Australian MP Nick Champion – a development that would have rendered the faction non-compliant with affirmative action rules.

Champion’s putative elevation triggered an internal controversy, with objections from both the right and left factions about the failure to promote a woman, that was resolved ultimately with King being anointed for the frontbench spot.

A lengthy argument broke out on Monday night, according to party sources, between the long-serving Victorian senator Jacinta Collins and the New South Wales frontbencher and faction convenor Joel Fitzgibbon about breach of process which ended with Fitzgibbon triggering the vote, and King prevailing overwhelmingly.

The right has a long history of carving up frontbench spots across all the state groupings. Party sources say Champion was gracious on Monday night despite the reversal to his fortunes.

Keneally is a high profile former premier of New South Wales, who was recruited as the party’s star candidate for last year’s Bennelong byelection.

Some party sources claim she was blocked by some powerbrokers in the right faction, including the party’s deputy Senate leader Don Farrell, in favour of King, who was backed by right wingers from the smaller states.

But others insist Keneally being blocked is completely untrue. “This was clearly a small states position,” one Labor MP said. “The right has always put heavy emphasis on state representation and this is absolutely no reflection on Kristina.”

King’s elevation will be rubber stamped by the Labor caucus on Tuesday.