Bill English is set to replace Gerry Brownlee as the National Party deputy leader in a possible new leadership role with John Key. Mr Brownlee has confirmed he will step aside as National's deputy leader. He stresses he has not been shafted and will still hold a high ranking position in National.

Speculation has been rife that Mr Key would step into National's leadership role, vacated by incumbent Don Brash who on Thursday announced his intention to step down at tomorrow's caucus meeting.

Political editor Barry Soper says Mr Brownlee stepping aside would be in the best interest of the party. Mr Soper says Gerry Brownlee was a safe pair of hands under Don Brash, but to ensure a smooth transition he will step aside to allow Bill English to be John Key's deputy.

The election for the leadership will be held when the National Party caucus meets tomorrow.