The NSW State Labor Party is currently without a leader after Jodi McKay resigned during a press conference in Sydney last week.

Chris Minns and Michael Daley have been two names mentioned in the media as being potential candidates to replace Ms McKay.

South Coast SEC President Michelle Miran said she was "disappointed" by Ms. McKay's decision to resign.

"I'm a great admirer of Jodi, I think she was facing a very difficult circumstance against a government seen to be managing COVID," she said.

"She's a very fine person, and she was elected by the rank and file - it was the first time NSW Labor had an opportunity to vote for a leader, and they did convincingly.

"I think it was a very sad moment for the ALP given the strides we've taken to change our image, change the internal structures and the way things are done in NSW."

Ms Miran would not say who she supported as the next leader, but described both Mr Minns and Mr Daley as "extremely competent".

She also said any decision should go back to members of the Party around the state.

"When there is more than one candidate, obviously it should go back to the members to vote," she said.

"The rank and file have fought long and hard for democratic elections for leaders and other important positions, and it's only fair we're given that right again.

"Mr Daley is a hard worker, and a good person, and Mr Minns is a young, fresh face with some new ideas.

"They're both equally matched, and I hope it's up to the members to decide who they want to take them to the next election."

President of the Moruya branch of the Labor Party, Helen Kay, also said last week's resignation was not ideal.

"It's not the best thing that's happened, changing leaders is always difficult," she said.

"We need a huge dose of renewal through the party, and that's what we're working on in our branch, trying to see some genuine generational change.

"Despite COVID, we've had about 10 new members join in recent times, and quite a few of them are young, which is giving me a feeling of optimism for the future.

"Labor is a broad church, so we can embrace a wide range of views."

Despite the current happenings in the Party, Ms Miran said she felt the Party had a "good chance of winning" the next state election.

"We may have a bit of a crisis at the moment, but we've cleaned ourselves out (of scandal), and undertaken a long and diligent process of restoring integrity and honesty," she said.

"People are sick of all our assets being sold out from underneath us, and the inequity between Sydney and regional NSW."