Labour president Andrew Little hands over the reins at his final national council meeting on Saturday.
Vice-president Moira Coatsworth will take over the top job at the end of the meeting.
Mr Little, who is also national secretary of the Engineering, Printing and Manufacturing Union, was selected as his party's
candidate for New Plymouth last September.
He is stepping down as president - a role he held since March 2009 to focus on winning the seat back for Labour from National's Jonathan Young.
He said he had achieved what he set out to as party president.
"First of all, I committed to doing two years, which was to get the party into shape for fighting the election both organisationally and financially," he told NZPA.
"We've done that, we've repaid a lot of debt, we generate a surplus each year and we've started the process of building our war chest.
"So that was what I wanted to do and because I had expectations that I would be a candidate in the 2011 election I wanted to leave enough time for me to do that but on the basis that there was a good succession plan in place, and there is.
"So it's a good time to step down now."
Ms Coatsworth has been vice president since 2009. She was a child psychologist for 20 years and has held national roles in the health and disability sector.
"Moira's excellent. She's very sturdy and stable, and has a capable pair of hands and she has the confidence of the council. She will be very good for the party.
"She naturally will have a different approach, a different style, to me but we've worked very closely together in the whole time I've been in the job and I have great confidence in her taking up the role."
- NZPA
