After weeks of speculation Ms Burney – a Wiradjuri woman and member for the state seat of Canterbury – has confirmed she will seek preselection for the seat of Barton at this year's federal election.

A dozen Labor hopefuls have indicated they will put their hand up in a rank and file preselection for Barton.

But in a controversial move, the party is likely to announce Labor's national executive will take over the process to ensure Ms Burney is the candidate.

The seat is held by Liberal Nick Varvaris. But a boundary change last year turned it notionally Labor on a margin of 5.4 per cent.

On Monday, Ms Burney – who was the first Aboriginal member elected to the NSW Parliament – said she had been approached to go federal many times but never seriously considered it because of her love of state politics and its close connection with people's lives.

However, after 13 years in the NSW Parliament she had been considering her future when the opportunity arose.

She stressed the decision was not a reflection on the NSW party or opposition leader Luke Foley "who I truly believe will be the next Labor Premier".

"It's about being able to effect policy and people's lives not just at a state level but at a federal level," she said.

"That's very exciting and I hope in a very humble way that I can make a contribution to that".

Ms Burney said she would bring to the federal parliament a depth of experience.

She is a former director-general of the NSW Department of Aboriginal Affairs and held ministerial portfolios including fair trading the challenging community services.

Becoming the first Aboriginal woman in the federal House of Representatives would be "important for the Aboriginal community but it's also important for the broader Australian community" Ms Burney said.

However she stressed: "I will not be defined by my Aboriginality alone. I have strong experience in the environment, in child care, in education."

Asked how she felt about the intervention of national executive to effectively sideline local branch members, Ms Burney said she had won Canterbury three times through preselection.

"It's not like I've been given things on a plate," she said.

"I've worked hard. I respect the party. My job is to make sure the people of Barton respect me."

But the intervention will inevitably draw criticism from party members critical of the Labor machine overriding the rights of local branches.

"Despite the fanfare and commitment to change at the recent NSW state conference, the fact is the rank and file members won't get a say in one of the biggest factional deals in history," one party member said.

Ms Burney is a member of the left faction. Her move to Barton has been linked to a complicated deal to ensure federal opposition front bencher Joel Fitzgibbon – a right faction member – gets preselected in Hunter.

Opposition leader Bill Shorten praised Ms Burney as "an outstanding advocate for working and middle class Australia" and "a truly remarkable woman".

"She's a trail-blazer and a truth teller and I want this passion, integrity and advocacy in my team in Canberra," he said.