"I'm making it very clear,as the leader of the Labor Party,that I want the best team - the best team includes Kristina Keneally,"Mr Albanese told reporters at Parliament House.
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Mr Albanese's directive meant Senator Keneally could only be elevated to the shadow ministry if one of her factional colleagues from the NSW right made way for her because the party's factional rules dictate the number of frontbenchers who can come from each state and faction.
On Wednesday,Mr Husic said he had decided to be that person.
"While I've loved being a shadow minister,I won't be running for re-election to that role today,"he said.
"Instead I'll be backing my great friend Kristina Keneally for that spot. We need to ensure someone of Kristina's enormous talents has the opportunity to make a powerful contribution on the frontline,in the Senate."