He will announce the bid on Tuesday morning and set up a battle with another Sydney-based frontbencher, Anthony Albanese, who has already declared himself a contender.

Mr Bowen, from the NSW Right faction, served as Bill Shorten's shadow treasurer for nearly six years and was a key part of the Labor's economic leadership team.

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However, many in Labor believe he is now too closely associated with a failed policy platform following the devastating loss - especially Labor's proposed reforms to franking credits and negative gearing.

Earlier on Tuesday, agriculture spokesman Joel Fitzgibbon - also from the NSW Right - said he was considering a tilt at the leadership if nobody else would step up to contest Mr Albanese.

"I am prepared to run for change. I am getting a bit old as you can see, I've been around a long time and I would rather a younger person take up the mantle, but if I need to I will do it," Mr Fitzgibbon said.

Mr Bowen's entry into the race means Mr Fitzgibbon is likely to stand down, while another leadership aspirant from the right faction, finance spokesman Jim Chalmers, may also drop out.

Appearing on the ABC's Q&A program on Monday night, Mr Chalmers said he was weighing a tilt and consulting his colleagues. At 41, he would be able to argue he brings generational change to Labor.

Mr Albanese, of the NSW Left faction, was first out of the blocks when Labor's loss became apparent on Saturday night, confirming he would be a leadership candidate while Mr Shorten was still on stage conceding defeat.

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