Labor's Jay Suvaal has conceded that independent Daniel Watton will most likely be Cessnock's new mayor.
At the close of counting on Saturday night, Mr Suvaal had secured 43.59 per cent of the vote and Mr Watton, an incumbent councillor, had 47.93 per cent.
While counting was not complete, Mr Suvaal said on Sunday afternoon that it did not appear as though he would be reelected as mayor.
"While there has been an increase in my primary vote from the last election, without any Liberal candidate, (it) appears that most of the Liberal vote has shifted to the Independent candidate," he said on Facebook on Sunday.
Despite his loss, there would most likely be more Labor councillors elected.
"I am proud of the positive campaign our Labor team ran against a campaign of negative misinformation, personal attacks, intimidation and abuse," Mr Suvaal said.
"I am extremely proud of all our achievements over the past few years. We have made our community a better place."
He said he was looking forward to continuing to work as a councillor.
"I want to thank all those who have supported me, our campaign team and our amazing candidates. But most of all I want to thank my family who I now look forward to being able to spend more time with," he said.
Independent councillor and businessman Daniel Watton said he was feeling quietly confident ahead of counts resuming on Monday.
"It's almost historic, given how strong Labor has been in our area," he said.
"Obviously we have the big pre poll which is due to be counted tomorrow and we do expect with the trends the way they have been in Ward A and B particularly, that trend will continue in our favour.
"But I don't want to count our chickens before they all come home to roost, but I'm quietly positive."
He said if he were to be elected Cessnock's next mayor he would be "community focused and community first".
"Our whole campaign was around people over policy," he said.
He also wished Jay the best moving forward.
