Tasmanian Premier Paul Lennon is expected to quit politics today.
Mr Lennon called colleagues, Treasurer Michael Aird and Speaker Michael Polley, to his home late yesterday to tell them of his decision, The Launceston Examiner reported today.
"I think the exact words he said were, 'it's time for a new era, time for a new generation,''' Mr Polley told the paper.
"We tried to talk him out of it over the weekend but in the end it was his decision and his decision alone to go now.
"He's in good spirits. He just believes it's in the best interests of Tasmania."
An opinion poll last week had Mr Lennon's personal approval rating at 17pc, compared to Liberal leader Will Hodgman's rating at 39pc.
He is expected to tell caucus of his decision when it meets at 4pm.
State parliament resumes tomorrow.
Mr Lennon's deputy, David Bartlett, is expected to be elected leader, and Lara Giddings as deputy.
The local EMRS poll showed voters, for the first time in eight years, wanted a Liberal government over Labor.
It was taken in April after the Lennon Government lost its second deputy premier in two years, when Steve Kons was forced to resign in disgrace after being caught lying to parliament.
The State Government has slumped six percentage points to 33pc of the overall vote since last March.
Liberal backing has jumped five percentage points to 42pc.
The Tasmanian Greens have 22pc of the vote, while 22pc of Tasmanians want Greens leader Peg Putt as premier, according to the respected poll.
Mr Lennon was sworn in as Tasmania's 42nd premier on 21 March 2004 following the resignation of Jim Bacon shortly before his death from cancer.
The Lennon Government was re-elected for a further four-year term in March 2006.
Mr Polley said on radio this morning that he was shocked by the decision.
"I had had calls from right across the parliamentary Labor Party and outside the party urging me to persuade him to stay, but he's always controlled the agenda," he said.
"Once he made the decision he decided to go. He's always put Tasmania first.
"He felt he'd go out on his terms."
Mr Polley told the Examiner that Mr Lennon wanted to give his successor time to make his mark.
"Paul has decided this is the right time to give his successor a clear run to the next election, 22 months to stamp his authority and his policies on government," Mr Polley said.
"I believe that this will lead to generational change."
Mr Aird said Mr Lennon's decision was the right one.
"It gives the Labor Party the best chance to win at the next election and his achievements will be talked about for a long period of time," he said.
Both Mr Polley and Mr Aird denied Mr Lennon faced a leadership challenge if he decided to stand firm.
The Hobart Mercury reported today that Mr Bartlett was preparing a challenge, but not immediately.
"It's bull dust. Never, never on the radar. Never," Mr Polley said.