Labor's opposition treasury spokesman, Ryan Park, will act as the party's leader in the NSW lower house when parliament resumes.
Penny Sharpe is acting opposition leader after Michael Daley stood down following last month's poor election result which saw the defeated ALP pick up just two seats.
But Ms Sharpe is a member of the state's upper house, meaning the party needed someone else to run the show in the lower house.
The Labor caucus met on Monday and agreed to a short-term solution.
"As interim leader, Penny Sharpe has asked shadow treasurer and member for Keira, Ryan Park, to act as leader of the opposition in the Legislative Assembly when it sits," the party said in a statement.
Following Labor's bruising March 23 loss - when voters returned the coalition to the government benches for a third-straight term - party officials resolved to hold a rank-and-file ballot for the leadership after the federal election due in May.
The plan was to limit any negative impact on Bill Shorten's campaign.
Mr Daley initially vowed to contest the Labor leadership ballot but later changed his mind stating: "I have always put the interests of the party first and, in making this decision (not to run), continue to do so."
Frontbenchers Chris Minns and Jodi McKay will likely vie for the leadership.
Ms Sharpe has made clear she won't run. She expects a permanent leader to be installed "by the end of June".
