'Haven’t always got it right': Deputy Premier Troy Grant steps down as Nationals leader

Besieged NSW Deputy Premier Troy Grant has stepped down as the leader of the Nationals after a disastrous by-election in Orange.

As the Nationals prepare for the shock by-election loss, Mr Grant said he hopes his resignation will help the party move on.

On Sunday night Mr Grant remained defiant that he was still “the leader for the remainder of this term”, as rumors circulated a potential leadership spill motion was set for Tuesday.

"As a result of The Nationals candidate for Orange Scott Barrett facing an uphill battle to hold the seat, I have informed the NSW Nationals leadership team that at tomorrow’s Party Room meeting I will be standing down as Leader of the NSW Nationals," Mr Grant said in a statement.

"I hope that through my actions the NSW Government is given the opportunity to pause and reset the way it is seen to be governing and our record of delivery can once more be front and centre."

The poor by-election result added to the mounting case against Mr Grant after his unpopular greyhound ban backflip, his proposal for baggy green caps for ministers and his decision to mint a bizarre set of “Troy Coins” outlining his various portfolios, landed him in hot water.

"It has been an incredible privilege to serve in that role and lead a team whose sole focus is to serve the people of regional NSW," the outgoing leader wrote on Facebook.

"At all times I have been guided by my principles of honesty, integrity and hard work but I accept the result in Orange is a clear message that we haven’t always got it right, nor have we always taken the community with us."

The hotly contested by-election has seen Labor, the Shooters, Fishers and Farmers, and other minorities band together to stage a “choose the Nationals last” campaign, capitalising on the public’s discontent over the greyhound racing ban shambles.

On Sunday night Premier Mike Baird denied reports he had been personally ringing ministers to save Mr Grant’s position.

“It is a matter for the National party room to decide their leader,” Premier Baird added. “Can we do better? Yes, we can and I say both of us in that, we both can.”

Skills minister John Barilaro now seems the likely frontrunner to swoop on the leadership role, telling News Corp that the party had a “process in dealing with leadership as per the media speculation”.

The indecision surrounding their leader comes after the Nationals prepare to lose the once safe seat to the Shooters in a 33.8 per cent primary vote swing against the party.

On Sunday it was reported Mr Grant had been making phone calls to colleagues critcising his potential rival Mr Barilaro in an attempt to snuff out the move against him, however it was not enough to save his position.

Local Government Minister Paul Toole and Primary Industries and Water minister Niall Blair are also considered as potential replacements.