Paul Toole faces likely challenge as NSW Nationals leader from Dugald Saunders

Paul Toole may be challenged by Dugald Saunders at the party's post-election meeting. (ABC News)

Paul Toole may be challenged for the position of NSW Nationals leader tomorrow, when the party meets for the first time since last month's election, in which it failed to make any ground. 

The ABC understands that former agriculture minister Dugald Saunders will nominate for the position when the party opens the ballot for leader.