Retiring Fowler MP Chris Hayes backed Ms Le to replace him at the next federal election but was overruled by the NSW Labor Party.

A local lawyer and community advocate, Ms Le said she was disappointed for the community, which felt it did not get a say in who represented them.

"We know it happens a lot of the time on both sides of politics but I think now people who couldn't care less about politics are more engaged," she told ABC radio on Tuesday.

"They're furious in fact. The public commentary about this clearly shows their rage."

Senator Keneally, who is a former NSW premier, will move from her home on Sydney's northern beaches to the multicultural area.

Ms Le, who has Vietnamese heritage, said the "debacle" highlighted issues with diversity in politics.

"I grew up, I live, in this area and I fight for this area every day in my life as a community worker, as an advocate, an organiser and a lawyer," she said.

Labor leader Anthony Albanese said his Italian surname and the party's Senate leader Penny Wong were examples of diversity at the highest levels.

"What we've done is make a huge difference on cultural diversity," he told reporters in Sydney.

Mr Albanese has spoken to Ms Le about the situation, which he said happened from time to time in competitive politics.

"I've encouraged her to hang in there. She's 30 years old. I think she has a very bright future ahead of her."

Senator Keneally hit back at media coverage of her Labor colleagues questioning the party's commitment to diversity.

Labor MP Anne Aly branded the decision a huge failure for diversity, while veteran politician Joel Fitzgibbon said not selecting a local candidate was a shame.

Mr Albanese has pointed to Ms Aly's Egyptian heritage and fellow MP Ed Husic's Bosnian background to show multiculturalism in the caucus.

He has also noted Indigenous MPs and senators Linda Burney, Pat Dodson and Malarndirri McCarthy.

Australian Associated Press