The Liberal Party will lose one of its most senior women and moderate figures with Jobs and Industrial Relations Minister Kelly O'Dwyer to quit politics.

Ms O'Dwyer was flanked by Prime Minister Scott Morrison on Saturday afternoon as she announced she will not recontest her Melbourne electorate of Higgins at the election.

Jobs Minister Kelly O'Dwyer will announce her resignation from politics on Saturday. Credit:Alex Ellinghausen

She said she was "absolutely confident" Mr Morrison would lead the Coalition to victory in at the election but she could not commit to another three years in public life.

Ms O'Dwyer said she was partly motivated by her desire, at 41, to have a third child, and "everything would have to go right" for that to occur. Her children will soon reach primary school age and she did not want to "consistently miss out" on important family time.