Victoria could have its first female premier in more than three decades as Daniel Andrews heads for the door.

Mr Andrews will finish in the role at 5pm on Wednesday and relinquish his seat of Mulgrave, after announcing his decision to step down at a press conference on Tuesday.

The outgoing premier cited thoughts about life after the top job as his reason for leaving, hinting he could work in the private sector after taking time off.

“To be honest, I’ve spent a long time in the public sector … I think it highly unlikely that I’ll spend too much more time in the public sector after five o’clock tomorrow,” Mr Andrews told reporters.

“I’ve been privileged and honoured to be, in a way of speaking, a public servant for 21 years.”

Mr Andrews was flanked by his family as he made the announcement while members of cabinet, including presumed successor Jacinta Allan, also watched on.

The deputy premier has nominated herself for the top job ahead of a Labor caucus meeting at noon on Wednesday, while public transport minister Ben Carroll is also considered a possible contender.

If successful, it would make Ms Allan the state’s first female premier in more than 30 years since Joan Kirner stepped down in 1992.