The disgraced New South Wales MP Daryl Maguire will resign from the seat of Wagga Wagga following a corruption scandal, the state premier has announced.

Gladys Berejiklian said on Saturday Maguire had told her he would resign next week, before the resumption of parliament on 7 August, prompting a byelection in Wagga Wagga.

Maguire stood down from the Liberal party just over a week ago after recordings were played to the Independent Commission Against Corruption (Icac) of him trying to strike a deal with the then Canterbury City councillor Michael Hawatt in 2016.

The recording captured Maguire discussing potential developer “dividends” with Hawatt for helping arrange a multimillion-dollar property deal with Chinese developers.

Maguire had told the hearing he had never done business with Hewatt.

Maguire was also parliamentary secretary for counter-terrorism, corrections, veterans and the Centenary of Anzac. He said he would remain as an independent but was under pressure from the opposition and local government to quit.

Maguire, who has held the safe seat since 1999, apologised for causing “distress and embarrassment” to the party and denied he had ever received or shared any commission from brokering property deals with Hawatt.