Bribery MP quits Liberal party, will not contest next election

Besieged NSW Liberal MP Andrew Cornwell is set to quit politics following corruption revelations this week at the Independent Commission Against Corruption (ICAC).

Dr Cornwell will not recontest his seat at next year's state election in March.

The government whip stood down from the party on Wednesday and is the latest political scalp from the ICAC this year.

Dr Cornwell and fellow Liberal MP Tim Owen stood down from the Liberal party on Wednesday shortly after counsel assisting the commission, Geoffrey Watson, first aired allegations against them.

Mr Owen, a former top-ranking RAAF officer, had already announced in May that he wouldn't be recontesting his seat next year after being named by the ICAC.

Evidence at the ICAC has heard that Hugh Thomson, a former campaign staffer to the member for Newcastle, was at the centre of illegal activity involving banned donations from developers.

Mr Owen has claimed he had "no knowledge" of any funding irregularities in his 2011 election campaign but conceded it was "highly likely" that prohibited donors contributed to his cause.