Hamilton West MP Gaurav Sharma has resigned after the Labour Party's governing body, the New Zealand Council, recommended he be expelled from the party as a member.

In a recent Facebook post, Sharma claimed he had been advised that Prime Minister Jacinda Ardern and the Labour Party planned to "invoke the Waka Jumping rule 6 months before the next General Election to remove me from Parliament which will ensure there is no need for a by-election".

"I have sincere concerns that this underhanded move will mean people of Hamilton West will have no voice in Parliament for six months preceding the next general election," Sharma's post read.

Sharma said he decided to resign from Parliament and trigger a by-election to give "the people of Hamilton an opportunity to not lose their democratic rights".

Photo by Mark Mitchell: Labour MP Gaurav Sharma has been expelled from the Labour Party and want to trigger a by-election. Photo / Mark Mitchell

Each by-election costs the taxpayer an estimated $1 million, the Electoral Commission has said previously.

Sharma said he intended to launch a "new centrist party" alongside the by-election, with a focus on "outcomes and action rather than on ideologies".

In a statement, Prime Minister Jacinda Ardern doubted Sharma's account, saying the party had not considered invoking the waka jumping provisions.

"We have not, and are not, considering invoking the waka jumping provisions, nor do I know the basis of Gaurav Sharma's speculation.

"Gaurav may wish to reconsider his decision given he is unnecessarily costing the taxpayer hundreds of thousands of dollars to trigger a byelection he then intends to stand in.

"We consider it unnecessary and wasteful given the general election is scheduled for 2023."

Speaking to the media, Sharma claimed he had a meeting with the New Zealand Council last Saturday to discuss a report compiled by the Council, presumably on Sharma's future with the party.

He alleged members of the council had told him the Labour Party wanted to invoke the waka jumping legislation less than six months out from next year's general election which would mean a by-election would not be possible.

Sharma's comments echoed his earlier claims that Labour MPs were leaking information to him when he first raised the issue of bullying within Parliament