Labor's Rachel Stephen-Smith is set to become the next deputy chief minister of the Australian Capital Territory following a cabinet reshuffle triggered by the resignation of Yvette Berry.

Berry resigned after an integrity commission report found her former chief of staff engaged in corrupt practices related to a primary school upgrade contract.

Stephen-Smith confirmed her candidacy during a caucus meeting, stating she has the confidence of colleagues but emphasized the decision would be made by the caucus.Chief Minister Andrew Barr will announce the new deputy leader and cabinet appointments in a press conference later Monday.

Stephen-Smith, a member of the party's Left faction, expressed gratitude for colleagues' support but acknowledged the sadness of Berry's resignation after nearly a decade in the role.

The government has addressed systemic issues highlighted in the corruption report, with Stephen-Smith praising Berry's swift action in resigning despite being cleared of wrongdoing.The reshuffle follows the integrity commission's findings, which prompted Berry's exit under ministerial code of conduct requirements.