NSW Labor would lose 21 seats and be swept from government if a state election were held today, the party's internal polling shows.
Premier Morris Iemma admits Labor's poor standing with voters has only worsened and infighting over his plan to privatise the state's electricity industry has not helped.
Documents leaked to the Nine Network, show Labor would shed 21 seats and lose by five seats if the election were held now.
"This certainly is sending a message to the government to lift its performance, lift its game. To myself to work harder," Mr Iemma told Nine.
Londonderry, Coogee, Camden and Heathcote are among the electorates deserting Labor, according to the polling.
On the Central Coast the seats of Wyong, The Entrance and Charlestown are in danger, with Wollondilly and Monaro in the state's south and Tweed in the north also up for grabs.
The bad news comes just a day after a Newspoll revealed the state opposition maintains its four-point lead over Labor on a two-party preferred basis, 52 per cent to 48 per cent.
Mr Iemma agreed that internal politics over the electricity privatisation scheme have contributed to poor voter polling.
"It's obviously had an impact, you can see that," he said.
The fate of the sell-off will be determined on Thursday when the NSW Auditor General Peter Achterstraat releases his review of the plan.
Mr Iemma said he would consider recalling parliament early after the report was handed down.
"I won't rule it out. I won't rule anything in or out at this point in time," he said.
Nine reported that Mr Iemma said he would be the leader at the next election and would not bow to union pressure for his removal.
"Those who are wanting to initiate a change at the top weren't elected, and they ought to respect that fact," Mr Iemma said.
"We run the state, not the unions."