The resignation of health and transport minister Meegan Fitzharris from the government was a "contributing factor" for Chief Minister Andrew Barr choosing to stay in the role beyond 2020.
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The Chief Minister said he knew about Ms Fitzharris' decision to resign from her ministry positions and from ACT politics for some time, before she made the shock announcement on Wednesday.
Speaking on ABC radio on Thursday, Mr Barr said Ms Fitzharris leaving politics was one of the major reasons he decided to stay on in the top job after the next territory election.
"When it became clear to me that she was going to make her decision, that was a factor I had to consider about my own future," Mr Barr said.
"Both of us going wouldn't be particularly useful for the government."
Ms Fitzharris had widely been touted as a successor to Mr Barr as Chief Minister, but she said it was a misconception that she wanted the role.
She said her decision to stand down from her role, more than one year out before the next election, was a personal one, and wanted to spend more time with her family.
While Mr Barr previously hinted he might not stay on as Chief Minister following the recent federal election result, Ms Fitzharris' resignation was one of many factors that convinced him to remain in ACT parliament.
"One contributing factor was the conversation I had with Meegan [about her decision to leave] earlier this year," Mr Barr said.
"It was one factor and there are a number of factors."
The Chief Minister said the resignation of Ms Fitzharris came during a regular period of the electoral cycle.
"We're in four year fixed terms, so we know when the next elections are, and we're now in that decision-making season," he said.
"No one is in politics forever...and we're at a point where people need to start making choices to contest pre-selection or seek re-election."
Ms Fitzharris will officially resign from her ministerial positions on Sunday and is set to leave politics in coming weeks.
She will be replaced by Deepak-Raj Gupta, a long-serving public servant, who will be elected on countback.
Mr Gupta previously spent 17 years working in the Defence Department until he resigned from the role last Friday.