A 22-year veteran who has served in both the Senate and the House of Representatives, Mr McMullan said today that he would retire from parliament rather than run again.

"This has not been any an easy decision for me," the 62-year-old said.

"I've indicated that I would contest one more election. I have decided to serve the rest of this term, take a holiday with [wife] Robin which is about 20 years overdue and then find a new career."

Mr McMullan said he would seek work in international development but not until he left parliament - to do so before that would be inappropriate.

He said he wanted to continue to work to fight global poverty.

The move comes after a year after Mr McMullan announced the next federal election, due this year, would be the last he would contest. That announcement led to months of speculation about a possible challenge in his safe seat of Fraser.

Mr McMullan served as the secretary for the Western Australian branch of the Labor Party from 1975 to 1981 and as National Secretary of the party from 1981-1988.

During his 22 year career in parliament, Mr McMullan has served as manager of government business in the Senate, as arts and trade minister, as parliamentary secretary to the Treasurer in the Hawke and Keating Governments, as well as in the shadow treasury, finance and industrial relations portfolios.

Since the election of the Rudd Government, he has served as the Parliamentary Secretary for International Development Assistance.