NSW police minister stands down

NSW Police Minister Mike Gallacher has stood down from the ministry, pending the outcome of the NSW corruption watchdog's explosive inquiry into banned donations.

The announcement was made by barrister Arthur Moses SC at the Independent Commission Against Corruption hearing in Sydney.

He asked counsel assisting Geoffrey Watson SC to confirm he would pursue a corruption allegation against Mr Gallacher.

"Oh, yes," came Mr Watson's prompt reply.

"My learned friend has said that - I assume - having given it some thought," Mr Moses said.

"Having stated that, then the position of the minister, which will be announced shortly, (is that he) will stand aside as minister pending the outcome of the inquiry."

NSW Premier Mike Baird is expected to release a statement shortly.