New South Wales Premier Gladys Berejiklian has confirmed embattled MP Daryl Maguire will resign from NSW Parliament triggering a by-election for the seat of Wagga.

In a press conference on Saturday afternoon, the Premier said she had spoken to the former Liberal MP and he had confirmed his intention to resign before parliament resumes on August 7.

The ex-Liberal MP had been under intense pressure to quit after admitting at the Independent Commission Against Corruption earlier this month that he sought payment to help broker a deal with a Chinese property developer.

The Premier said there would be a by-election and the Nationals would not run a candidate.

"Suffice to sat I made my views known last Friday at how deeply disappointed I was at the events which transpired at ICAC," she said.

"I can confirm that this morning I spoke to Mr Maguire, he advised me of his intention to resign from parliament before it resumes.

"I have also spoken to the Deputy Premier this morning, we both agree there will be a by-election in the seat of Wagga. That there will not be a three-cornered contest.

"The Liberal Party has held that seat for half a century and the Liberal Party has opened nominations."

The member for Wagga Wagga had been embroiled in a corruption saga after he admitted to seeking payment to help broker a deal with a Chinese property developer during evidence at the ICAC inquiry into the former Canterbury City Council.

Last Friday Mr Maguire resigned from the parliamentary Liberal Party, and had previously announced he would not contest the next state election in March 2019.

Despite facing mounting calls for his resignation, including pressure from New South Wales Acting Premier John Barilaro, Mr Maguire had refused to quit Parliament.

Angry voters turned to signs to urge NSW Liberal MP Daryl Maguire to resign

But that was before Saturday's announcement.

On Thursday he announced he would go on bereavement leave after revealing his son-in-law had died after a short illness.

The ex-Liberal MP appealed for privacy.

Wagga residents have their say

At the local football fields in Wagga this afternoon there was almost unanimous agreement that Mr Maguire's resignation was the right thing to do.

"We want him to be giving a hundred per cent effort to representing the people of Wagga and I think a lot of people can see that hasn't been happening," local Martin Elliot said.

"Resigning is the honourable thing to do, it probably came a little bit later than it should have but he's done it now and hopefully we can move on."

Speaking in Wagga today, Luke Upfield wanted the option of voting for a Nationals candidate ( ABC News )

But some at the footy this afternoon questioned why the Nationals would not be running a candidate in the by-election.

"You've only got good government if you've got good competition and good opposition," Luke Upfield said.

"So by running more candidates it would give us a better opportunity to vote for who we think is a better option."

Wagga by-election

Responding to questions on whether the people of Wagga could still trust the Liberal Government, the Premier said it was a "matter for the community".

"I've made views very clear. I've always said, even if it comes at a cost to us politically we'll do what's right — and that means having a by-election in the seat of Wagga.

"The public would not have accepted had we held the seat open to March next year (the date of the next state election), so as frustrating as it is for everybody, I think it's the right thing to do."

The date for the proposed by-election is not yet known.

Luke Foley described the Premier's actions as "weak" ( AAP: Tom Compagnoni )

Labor leader Luke Foley said as soon as the phone tap was played in the ICAC hearing room, the Premier should have kicked Mr Maguire out of parliament.

"For eight days she sat on her hands," he said.

"It took leadership from Labor, Labor's firm declaration during the week that on the first day parliament meets in a couple of weeks time, we'd be moving to expel him, that's what's led him [to] this result.

"Good riddance to bad rubbish, but it's no thanks to a weak Premier."

There is no date yet set for the by-election.

It is a safe Liberal seat, with Mr Maguire winning the 2015 State election by a two-party preferred margin of 62.9 per cent to Labor's 37.1 per cent, despite a 14.9 per cent swing to Labor.

Wagga Wagga sits in the middle of the safe Nationals federal seat of Riverina, held by the Deputy Prime Minister Michael McCormack.