Natasha Fyles new NT chief minister
A former school teacher and mother of two boys will be the Northern Territory's next chief minister following Michael Gunner's surprise resignation.
Former health minister Natasha Fyles, 43, was selected by Labor's 14-member caucus on Friday following days of behind-the-scenes wrangling between the party's left and right factions.
"I'm a territory girl through and through. I've put my hand up to serve because I love this place. I want to work everyday to make better," she told reporters.
"I'm ready for this job and I will hit the ground running."
Ms Fyles said caucus unanimously supported her following passionate and respectful discussions.
She will be sworn in as chief minister by the territory's administrator later on Friday.
Cabinet will remain the same for the next week of parliamentary sittings with Ms Fyles adding Mr Gunner's portfolios to the health ministry.
A new leadership team and cabinet will be sworn in the week after, with changes expected.
Ms Fyles, from the left faction, is the second woman to be appointed chief minister and the third to lead Territory Labor.
She is also the second of the NT's 12 chief ministers to be born in the territory since the Legislative Assembly's first election in 1974.
No one publicly nominated for the top job but it was expected to go Mr Gunner's right-aligned deputy, Nicole Manison, with Ms Fyles as her likely deputy.
Ms Manison took to social media to congratulate her "dear friend", saying "She will do a great job leading our team".
"I am incredibly proud of her," she said on Facebook in show of party unity.
Ms Manison will remain deputy for the next week.
Mr Gunner, 46, stood down on Tuesday moments after handing down the NT budget, saying his head and heart were no longer in the job.
Ms Fyles entered parliament in 2012. The change of leadership from right-aligned Mr Gunner to the left could led to policy adjustments, concerning social and environmental issues.
"The logical point of difference would be fracking but the territory government s under intense pressure from the federal government to let it continue," political economist Rolf Gerritsen told AAP.
"I don't think there will be any change."
Prof Gerritsen said the NT government's debt woes would make it difficult to expand social policies
"There's not much room for a territory government to move," he said.