Paul Toole has been rolled as the NSW Nationals leader by Dubbo MP Dugald Saunders after claims an MP was encouraged to break ranks to secure a plum parliamentary job.
Toole's defeat in a party room meeting today comes after MP Ben Franklin claimed the then-leader had supported his bid to nominate for president of the upper house.
Franklin came under fire last week when it emerged he was considering the role as it would give Labor an effective majority in the evenly balanced upper house.
READ MORE: Who will get the $500 sweetener in cost of living cash splash
Franklin told the Sydney Morning Herald Toole had told him the move would be "really good" for the party, even if their Liberal counterparts were unhappy with the move.
"I'm frustrated because Paul hasn't been honest about what took place here," Franklin said.
"I thought the leader of the party was happy with it, and I was acting under that assumption."
READ MORE: Police outnumbered as angry group descends on home
A ministerial salary is paid for the role, which also gives the upper house president a driver, three staff and a dining room.
Saunders lost to Toole by a single vote when the party decided its leadership in the wake of the Coalition's loss at the NSW election.
Sign up here to receive our daily newsletters and breaking news alerts, sent straight to your inbox.