Senior Labor figures say the troubled NSW branch of the party has "one last chance" to implement reforms or will be "electorally unviable" for the foreseeable future.

Former Keating minister Michael Lavarch released his review of the party on Friday, calling for significant changes including a ban on the general secretary seeking elected office for five years.

Former premier Morris Iemma says Labor must rebuild public confidence. Credit:Photo: Kate Geraghty

Party elders, including former NSW premier Morris Iemma and former party boss and senior minister John Della Bosca, said the Lavarch review was NSW Labor's last chance to change.

Under the reforms, a new state executive board will be established and an audit and risk committee set up, in a move designed to separate the political and governance functions of the party.