Former Labor leader Bill Shorten to retire from politics to take top job ...

Labor frontbencher Bill Shorten will retire from politics after an almost two-decade-long career in parliament.

He will remain in government and cabinet until February, when he will take up the position of vice-chancellor of the University of Canberra.

The NDIS minister announced his decision at a press conference with Prime Minister Anthony Albanese on Thursday, where he reflected on his 17 years in federal parliament.

"Through his years as leader, no-one worked harder than Bill," Mr Albanese said.

"No-one brought more energy, enthusiasm, ideas and ambition to advocating the need for a Labor government."

The prime minister said he asked Mr Shorten to remain in cabinet until next year because they agreed there was still "important work" to be done on the National Disability Insurance Scheme.

Labor MP Bill Shorten has announced his retirement from politics. (ABC News: Matt Roberts)

The government's overhaul of the scheme passed parliament last month and Mr Shorten said he was confident those reforms would mean a "bright horizon for the NDIS".

"What we did three weeks ago in the parliament has meant that we will be able to set this on a direction where the scheme will be true to its original purpose, where frauds are evicted and we will start focusing on outcomes for people," he said.

University of Canberra chancellor Lisa Paul said in a statement that Mr Shorten's work on the NDIS sat "perfectly with a university that hopes to be the most accessible in Australia".

It is unclear who will replace Mr Shorten in February, with a federal election due by May.

The prime minister said it was possible that there would be a small gap between his retirement and the election where the seat was vacant, but that the government would deal with the issue as it came.

Mr Shorten led the Labor Party for six years in opposition, including through two federal election defeats. He stepped down from the leadership following Scott Morrison's 2019 federal election victory.

Despite never realising his ambition of becoming prime minister, Mr Shorten on Thursday said he considered himself "one of the luckiest people in politics".

Continuing to reflect on his time in parliament, he said there had been "ups and downs" but that there was "not a single day" he would hand back.

"I think I am really lucky, I have had the chance to help create, defend and improve the NDIS, I have had the very privileged position to lead Labor, I have had the chance to help the victims of robodebt," he said.

"Every day in this job, and I'm sure every member of parliament agrees, is a privileged day."

Asked about his role in the removal of Labor leaders Kevin Rudd and Julia Gillard, in 2010 and 2013 respectively, he quoted from Frank Sinatra: "Regrets, I've had a few, but then again, too few to mention. I did what I had to do but much more than this, I did it my way."

Mr Shorten was first elected to the Victorian seat of Maribyrnong in 2007 after rising to prominence during the Beaconsfield Mine disaster, in which a miner was killed and two others trapped. 

As national secretary of the Australian Workers Union, he was the de facto spokesperson for the community and the families of the miners who were trapped underground for two weeks.

"Over 30 years ago, when I joined the Australian Workers Union, I was driven by the belief that everyone, regardless of circumstance, deserves an equal opportunity," Mr Shorten said.

Opposition Leader Peter Dutton described Mr Shorten as a "decent person" as he paid tribute to the former Labor leader, noting the "disappointing end" to his time leading the party.

"He was a leader of the opposition, a job nobody in their right mind wants, including me, everyone wants to get out of this job as quickly as they're able to," he told reporters.

"He recovered well and he showed a level of dignity and respect to our democratic process that he should be honoured for."