Wollongong MP Noreen Hay is set to announce her resignation from the NSW parliament by the end of the month.
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Fairfax Media understands Ms Hay will make the announcement on Tuesday following discussions with her family.
The announcement comes after Ms Hay did not recontest the position of Labor party whip after a senior staff member in her Wollongong electorate office was charged by Australian Federal Police in relation to allegations of electoral fraud.
The AFP has charged Susan Greenhalgh who has worked for Ms Hay for nine years.
However it is understood Ms Hay will say this has nothing to do with her decision to leave parliament. Ms Hay declined to comment.
Her resignation means there will be three byelections this year, with voters in Canterbury and Orange heading to the polls in November after Labor's Linda Burney and the Nationals' Andrew Gee won federal seats in last month's election.
The AEC began investigating Ms Hay's office after Fairfax Media revealed in December 2014 that a number of Ms Hay's local ALP supporters had updated their addresses on the electoral roll days before a crunch pre-selection vote in Wollongong.
According to the roll, three people had moved into the home of Judita Matic, an ally of Ms Hay and secretary of the ALP Wollongong branch.
But Fairfax Media found them living at their previous addresses outside the Wollongong electorate and therefore ineligible to support Ms Hay in the pre-selection vote.