NSW Labor whip Noreen Hay has stepped down from the position amid a police investigation into electoral fraud.

Australian Federal Police raided the member for Wollongong's electoral office on Wednesday, nearly eight months after receiving a referral from the Australian Electoral Commission detailing allegations of enrolment fraud.

Both agencies have declined to comment on the nature of the allegations, and it remains unclear whether Ms Hay has been personally targeted.

Opposition Leader Luke Foley has accepted Ms Hay's offer to stand aside pending the outcome of the investigation.

"I maintain that Ms Hay is entitled to due process," he said in a statement on Friday.

The AEC referred the allegations to the AFP on December 8, two days after Ms Hay won a tight preselection battle for the seat of Wollongong.

In a brief statement, Ms Hay confirmed she had stepped down as whip and pledged to continue to assist with the investigation.

“Today I have stood aside as Opposition Whip pending the outcome of an investigation into my office,” her statement read.

“I will continue to assist the AFP with this investigation. As the matter is subject to a police investigation, I cannot comment further.”

The Labor caucus is expected to elect her replacement before parliament sits again in early August.