The Northern Territory Labor Caucus met on Wednesday and unanimously chose Member for Drysdale Eva Lawler as the new Chief Minister of the NT and Eastern Arrernte man Chanston Paech, the Member for Gwoja, as Deputy Chief Minister.

They will be sworn into the positions Thursday.

In May 2022 Mr Paech became Attorney General and Minister for Justice, naming the reduction of Indigenous incarceration rates as a top priority.

Earlier this year he drove reforms to sentencing and youth justice laws.

Mr Paech was first elected a member of the Alice Springs Town Council 11 years ago. His mother is Eastern Arrernte.

In 2016 he was elected to the NT Legislative Assembly as the Member for Namatjira, a bush electorate in Central Australia. Elected to represent another bush electorate, Gwoja in 2020, Mr Paech is currently in the third year of a four-year term.

Ms Lawler noted that current Deputy Chief Minister Nicole Manison decided to move to the backbench.

"We thank Nicole for her hard work over the last seven years in Cabinet, and the work that she has put into growing the Territory's jobs and economy, Nicole will continue to serve her constituents as the Member for Wanguri," she said.

"The Territory Labor Government is completely focused on creating jobs, tackling cost of living pressures and making the Territory safer. Those are our priorities because those are Territorians priorities."

Former Chief Minister Natasha Fyles stepped down this week while under scrutiny for undeclared share holdings.