New Zealand's Labour party leader David Cunliffe, who lost to Prime Minister John Key in the recent election, is now reconsidering the future. Former loyalist Iain Lees-Galloway, a Palmerston North MP, has advised Cunliffe to step down as party leader to prevent destabilisation.

According to reports, he was one of Cunliffe's strongest supporters in the leadership contest in 2013. Lees-Galloway is expected to counsel Cunliffe that it might be better to step aside because of the caucus. In a New Zealand Herald report, Cunliffe is believed to have taken some time off to start rethinking his political future after several of his key supporters have withdrawn from the caucus. The move was understood to be another sign that the party wants him to step down.

Three of Cunliffe's key backers reportedly believe the Labour leader is no longer capable of leadership since he has no control over caucus. With key backers slowly withdrawing their support, Cunliffe is facing the choice of holding on as party leader or resigning. Reports said that if he will give up his leadership role, he could remain as deputy leader or a caretaker until the Labour party holds a formal leadership contest.

Cunliffe's response to the election result and his insistence on remaining as leader has raised open objections in caucus. A spokesperson for the Labour leader said Cunliffe was not available for an interview since he will be taking time off with his family.

The Herald said it was understood that deputy leader David Parker had stepped down from his role since he believed it was not appropriate. Parker said he was no longer supporting Cunliffe as Labour leader. He had planned on announcing his decision to step down publicly, but he was advised against it by other MPs because they think it will only add to the chaos.

According to a source close to Cunliffe, it may be difficult for him to win the support of majority of the party members, given the results of the election and the caucus. MPs are currently in talks outside the caucus to try and agree on one candidate for party leadership.