New South Wales Opposition Leader Luke Foley has threatened to resign if the party whip, Noreen Hay, does not step down from her position.

Mr Foley had asked for the resignation of Ms Hay following charges relating to allegations of electoral fraud being laid by the Australian Federal Police (AFP) against a staff members in her Wollongong office.

Ms Hay said she would not resign.

The Labor Member for Wollongong stood aside as Opposition whip last year pending the outcome of the AFP investigation.

Ms Hay returned to the position less than two weeks ago after she gave personal assurances to Mr Foley she had no involvement in the alleged misconduct and stood by legal advice that she was not a person of interest in the investigation.

When asked what would happen if the Labor caucus did not support his demand for Ms Hay to resign, Mr Foley said he would quit as leader.

"I'd resign the leadership, frankly," he told ABC Illawarra's Nick Rheinberger.

"I'm very confident that the caucus colleagues will accept my judgement on this matter that Noreen should take a step back.

"The harsh truth is that the buck stops with us who are elected by the people.

"We can't be held accountable for the private activities away from the workplace, but where activities that involve the employees own line of work end up before the courts.

"The harsh reality is that members of Parliament will be held to account by the public for that."

Ms Hay said she would not step down because she had done nothing wrong.

"I've refused on the basis that the ordinary person out there in my electorate and in the community gets a coffee and sits down to read the paper would assume that if I resigned, I must have done something wrong," she said.

"There are no allegations or charges against me. I'm not a suspect."

Mr Foley said a meeting of the Labor caucus would be held this week to elect a new whip.