NSW Transport Minister David Elliott has withdrawn from the race for the Liberals deputy leadership, after being the first to put his hand up.
Mr Elliott announced his withdrawal from Tuesday's party room ballot in the same way he announced his contention - on Sydney radio station 2GB.
"I've just been in touch with the premier (Dominic Perrottet) today and in accordance with his wishes I don't think I'll be putting my name forward," he said on Monday afternoon.
"He certainly didn't tell me to withdraw but he certainly said that he didn't want to have a ballot and I respect that.
"At the end of the day he is my boss."
Treasurer Matt Kean on Monday confirmed he will seek the deputy leadership and is now likely secure it.
"I'll be putting my name forward and that'll be up to my colleagues to decide whether or not they'd like me to fill this role," Mr Kean told reporters.
Stuart Ayres resigned from cabinet and as deputy Liberal leader last week after a draft review found he had not remained at arm's length from the appointment of John Barilaro to a New York trade job.
Mr Kean leads the centrist "moderate" faction of the party while Mr Elliott is known for being a conservative. The pair have a history of conflict.
Mr Elliott had told News Corp he would withdraw from the contest if Mr Kean also stepped aside for a woman to fill the role.
Ten of the 33 Liberal members in the legislative assembly are women.
Eleni Petinos was also dumped from the ministry last week after bullying allegations emerged from her office, while Gabrielle Upton has already said she will not contest next year's state election.
Only one remaining Liberal woman eligible for the deputy leadership, first term member for Goulburn Wendy Tuckerman, is a minister. She has not confirmed an intention to run.
The stoush over the deputy leadership comes amid reports Mr Perrottet and Mr Elliott spoke about potential jobs the transport minister could do after retiring from politics.
Both have denied any future role was promised.
"The allegations in relation to the creation of a role that I would give to somebody outside politics is completely false and offensive," Mr Perrottet told Sydney radio 2GB earlier on Monday.
Mr Elliott's Baulkham Hills electorate has been abolished, but he said he would contest another seat at the March 2023 election if the party wishes.
