Michael Daley has vowed to remain as leader of the NSW Labor Party, amid the likelihood he will be challenged for the top job in the wake of Labor’s disastrous state election result.

It comes as Kogarah MP Chris Minns indicated he would challenge for the leadership if he held onto his seat, which was still on a knife’s edge as counting continued on Sunday.

Michael Daley is digging in and wants to remain as the leader of NSW Labor. Credit:James Alcock

However, inside the Labor Party shock at the result had turned to anger by Sunday monring as it became apparent that Labor, in a best-case scenario, would win only two seats - Coogee and Lismore.

“People are ropeable,” one senior party figure said.