Disgraced former NSW minister MP Eddie Obeid is trying to head off expulsion from the Labor Party by calling in the lawyers, Fairfax Media reports.

Lawyers for Mr Obeid have written to the ALP warning of legal action if he is expelled from the party, the Sydney Morning Herald says.

NSW Opposition Leader John Robertson demanded Mr Obeid be dumped from Labor in March after he and his family became the subject of the Independent Commission Against Corruption (ICAC)'s largest ever investigation.

ICAC has been examining allegations that Mr Obeid made millions from a coal exploration licence issued for Mount Penny in the Bylong Valley in 2008 by then NSW resources minister Ian Macdonald.

A letter from Mr Obeid's solicitor, Tim Breene, to NSW Labor executive officer Elizabeth Scully outlines that party officials are acting prematurely in moving to expel him before the ICAC has delivered its findings, the paper says.

The inquiry's findings are due later this year.

 

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