NSW Nationals leader Dugald Saunders has stepped down from office today, saying he is refocusing attention to his family and himself.

After over two and a half years in the position, he said now is the right time to take a step back.

"It’s been an honour to lead the Parliamentary team during a challenging time in Opposition and I’ve always done my best to represent regional NSW," Mr Saunders said.

"It’s a difficult decision but it is the right time for me to take a step back and focus more on my family and myself.

"It’s also the right time to allow a new leader to take up the fight ahead of the next election."

He says he will continue as Dubbo Nationals MP.

His decision appears to have caught many of his colleagues off guard and finding a replacement will likely be added to the agenda when they meet again in Sydney this week ahead of the next parliamentary sitting.

Dugald Saunders with Narromine Jets life member last week. [IMAGE: facebook]

Liberal leader Mark Speakman has thanked the former leader for being ''A champion for Dubbo and for the regions.''

NSW Farmers also thanked Saunders for his service.

The Nationals will meet as soon as possible to elect a new leader.

The member for Cootamundra Steph Cooke and former leader and Member for Bathurst Paul Toole are expected to put their hands up.

The resigning leader has not offered any further comments.