He announced last month he would take a leave of absence from the council and forfeit any wages during the election period, believing it would avoid a conflict of interest.

But the Labor legal team ruled there was still a risk Mr Kerr could be disqualified as a candidate and gave him until Tuesday to make the announcement.

“It was about Friday I was getting pressure to resign,” he said.

After seeking legal advice overt the weekend, he revealed his decision on Tuesday “with great sadness”.

Mr Kerr said he had spoken to the Victorian government, Municipal Association of Victoria, independent lawyers and the community before deciding to stay as a councillor while running for Indi.

“I sought their support in standing to serve and represent the people of Wodonga once again, but in a different arena and was very humbled to receive their backing,” he said.

“I took leave of absence for the period of the election, forfeited my email and phone access, my keys to the building and chose to forgo my wage.

“Every effort was taken and the best advice available to me from all corners was that this was more they enough.”

Mr Kerr said he had already made the decision not to run again in October’s council elections, but mentor other young people who were keen to take up a position.

Mayor Anna Speedie told The Border Mail the council had done its homework and supported Mr Kerr’s federal election bid, but would respect the decision of the Labor Party.

“This has come unexpectedly for us,” she said.

“Eric, as with all councillors, was passionate about Wodonga and I would like to thank him for the past three years.”

The move came after former mayor Mark Byatt stepped down six days earlier to take up a role with Regional Development Victoria, leaving the city with just five councillors.

Cr Speedie said the council could operate with a quorum of four members and it would be “business as usual” until the October elections.

Labor decision has prompted Jenny O’Connor to also take leave without pay from Indigo Council, but she said she would not resign.

She said the Greens advised her to stand down for the sake of clarity, to ensure there were no perceptions of wrongdoing.

“I’ve run twice now (for federal election) as a councillor and it’s never been an issue,” she said.

“The loss of Eric Kerr as a councillor is a big shame for the Wodonga community because he is such a good role model for young people.”