MIKE Baird has declared Gladys Berejiklian would be "an outstanding Premier" as she prepares to become only the second woman to hold the job in NSW.
"No doubt about it," Mr Baird said of the NSW Treasurer on Thursday after his shock announcement that he will quit politics next week.
"She's been outstanding. Incredibly loyal, hardworking, did a first-class job in transport and treasury. She, if given the privilege of the support of the party room, would make an outstanding Premier."
Ms Berejiklian is set to be elected leader when the Liberal party room meets at 10am on Monday.
Mr Berejiklian, who is with the party's left faction, will form a ticket with the right's finance minister Dominic Perrottet to become deputy Liberal leader.
The centre right and right factions have swung behind Ms Berejiklian under the arrangement, delivering her the leadership.
Mr Perrottet, who as deputy leader gets to choose his portfolio, is set to become Treasurer in a subsequent reshuffle.
Mr Baird, who became Premier in April 2014, told Fairfax Media he been discussing his options with family and friends for some time.
"The serious discussions around it happened this year – in the last two weeks was when the decision was made," he said.
He said he spoke to "very few" of his colleagues about his decision, informing them only at the last minute.
"This was a decision I wanted to make with family and friends," he said.
"Once it became clear in the last couple of weeks, I wasn't going to be talked out of it".
At his media conference, Mr Baird cited family pressures, the need to "refresh" the government for the next election and his record of economic, infrastructure and other achievements in explaining his surprise exit.
The decision comes just months short of his 10-year anniversary in the NSW Parliament in March, three years as Premier in April and two years out from the next state election.
"It's time for us to refresh, to reset our goals towards the 2019 election," he said.
"And as I've reflected on this refresh, with a lot of deliberation with those I love the most and my dear friends, it has become clear to me that this refresh won't include me."
"I strongly believe now is the time to hand over to a new Premier to ensure that the focus on 2019 and beyond continues to set the agenda," he said.
Mr Baird had a politically difficult 2016, including the humiliation of being forced to back down on his bid to ban greyhound racing in NSW, personal criticism over the lockout laws for licensed venues and fallout from the government's infrastructure agenda.
But the Premier has consistently stated it was his "intention" to contest the 2019 election as Premier and as the member for Manly.
On Thursday Mr Baird highlighted his inaugural speech to Parliament in which he said he wanted "to come into public life to make a difference".
"I said many times I didn't want to become a career politician," he said. "I wanted to go as hard as I could for as long as I could and then step aside.
"Today, I am making good on that pledge. After 10 years in public life, three years as Treasurer and three years as Premier, I think now is the right time to do this".
Mr Baird also said there is "a strong personal cost" that comes with the job "and I probably felt that more than any other time in the last few months".
Mr Baird's father, Bruce, is recovering from open heart surgery and his mother, Judy, has gone into 24-hour care with muscular dystrophy.
He revealed his sister, Julia, had "a re-occurrence of cancer. I was in hospital with her last week".
Ms Baird revealed in late 2015 she had been diagnosed with cancer.
With tears in his eyes and in front of his wife Kerryn and three children, Mr Baird said: "To be honest, at times I have been in pain at not being able to spend the time [with them>[/embedp>
