The New South Wales Nationals have elected a new leader following shock resignation of Dugald Saunders.

Coffs Harbour MP Gurmesh Singh will take over the leadership of the party while Member for Tamworth Kevin Anderson will become deputy leader.

The NSW Nationals met at 8.30am on Tuesday to install the new leadership line up ahead of the final parliamentary sitting week of the year.

Reports had emerged on Monday that Mr Singh, who was Mr Saunders' deputy, and Member for Bathurst Paul Toole were seen as frontrunners for the vacant leadership position.

However, Mr Singh was reportedly the only MP to nominate for leadership during the party room meeting.

Political reporter for The Daily Telegraph James Willis said he was not surprised that Mr Toole was not pushed to take up the role.

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