Mark Latham has been removed as the state's One Nation leader.
It comes after an extraordinary intervention by the party's federal leader Pauline Hanson.
Ms. Hanson says the party’s failure to meet expectations in the March state election is a key reason behind the change.
A party spokesperson said on Monday, the decision won't affect Mr Latham's position in NSW parliament, where he has an upper house seat until 2031.
Ms. Hanson has installed a new state executive in NSW and made herself the branch’s temporary leader.
