Labor sources say treasury spokesman and Clark MHA Scott Bacon will quit politics.
Mr Bacon, the son of former Labor Premier Jim Bacon, was elected in 2010.
Sources say Mr Bacon is quitting for personal reasons.
It is understood his former partner and their two children have moved interstate and he is also keen to move.
IN OTHER NEWS
Mr Bacon is Labor's treasury, racing, gaming and multicultural affairs spokesperson.
He is extremely popular in his electorate but has had a low profile since Parliament resumed.
Election analyst Dr Kevin Bonham said former Labor MP Madeleine Ogilvie would be the front-runner in a recount for Mr Bacon's seat.
"If she decides to contest she would be the most likely to replace him based on his votes," Dr Bonham said.
"However, if she doesn't then Tim Cox would easily beat Zelinda Sherlock."
However, Ms Ogilvie quit the Labor Party after the election to unsuccessfully contest the seat of Nelson in the Legislative Council.
She is still eligible to contest the recount. Ms Ogilvie and Mr Bacon have been contacted for comment.
Mr Cox, who left Tasmania after the state election and moved to Brisbane for work, says he will put his hand up for the recount.
"I threw everything at the election campaign because I believe in a brighter, fairer future for Tasmania," Mr Cox said tonight.
"I remain just as committed today to our exceptional island home and bringing new ideas and energy to our state's leadership."
News of Mr Bacon's early retirement comes ahead of the Labor Party's state conference in Burnie this weekend.
Mr Bacon is said to be widely liked by all his party colleagues and particularly the party membership.
While you're with us, you can now sign up to receive breaking news updates and daily headlines direct to your inbox. Sign up here.