UPDATE - NSW Labor MP Tania Mihailuk has been sacked from the shadow ministry after her attack on a colleague was deemed unacceptable. 

ORIGINAL - A NSW Labor MP has used parliamentary privilege to launch an attack on a mayor.

Bankstown MP Tania Mihailuk says she has “raised concerns” that Canterbury-Bankstown Mayor Khal Asfour is “tainted”.

Mr Asfour is strongly tipped to be a candidate on Labor's upper house ticket for next year's March election, but must be endorsed at the state Labor party conference next month before he can run.

Ms Milhailuk - under the protection of parliamentary privilege - said she had concerns over Mr Asfour's character that were “legitimate and long standing”, and linked him to jailed former Labor minister, Eddie Obeid.  

“It is exceptionally difficult for me to have to raise this matter in the House and, effectively, to have to rebuke the Labor Party,” Ms Mihailuk said.  

“I raise my legitimate and long standing concerns regarding Asfour's character and his unprincipled actions in furthering the interests of developers and identities, in particular Eddie Obeid.”

Ms Mihailuk claimed Mr Obeid attended Mr Asfour's wedding, “adorning him with a generous gift”.

“Asfour boasted at the time, and remained steadfastly committed to ensuring Asfour would be mayor throughout the period of redeveloping the landholdings in Bankstown,” she said. 

“I have never taken a backwards step against corruption, and I never will.”

Mr Asfour has described Ms Mihailuk's claims as “outrageous and unsubstantiated”.

“She has used parliamentary privilege to launch a cowardly attack on me and my family and I call on her to produce evidence of any wrongdoing to the relevant bodies,” he said.

“She is citing matters from 2012, this reeks of sour grapes at being overlooked on Labor’s upper house ticket.”

NSW Labor Leader Chris Minns said he is taking the allegations “seriously”, but he had not heard them before. 

“I'm going to take steps to talk to Tania Mihailuk today about two things firstly the nature of the allegations, the crimes that she's alleged or the corruption that she's alleged has taken place and whether she's referred those matters to the Independent Commission Against Corruption (ICAC) or other authorities,” Mr Minns said.  

Mr Minns also said he believes the mayor will refer Ms Mihailuk's statement to the corruption watchdog himself. 

Ms Mihailuk is herself battling for a seat following a redistribution in south-west Sydney, with the neighbouring seat of Lakemba having been abolished.

Lakemba had been held by Jihad Dib, but now both Ms Mihailuk and Mr Dib intend to contest the next election. There have been alleged arguments over which should transfer to run for the upper house.