Tasmanian Labor, which has been in opposition since 2014, failed to make inroads at the March 23 state poll which delivered a hung parliament.
Labor leader Rebecca White stepped down from the role after her third failed tilt at becoming premier, conceding the party would be unable to form government.
The incumbent Liberals, who will have to cobble together a minority government from 14 or 15 of 35 seats, suffered a 12 per cent swing against them.
Labor picked up 10 seats and had a first preference vote of just 29 per cent - a swing of less than one per cent.
Dean Winter, from Labor's right faction, on Friday confirmed he would nominate for the leadership position.
He was first elected in the southern electorate of Franklin in 2021, after his preselection was initially denied by state Labor - a decision overturned by the party's national executive.
The 38-year-old grew up in Kingston, south of Hobart, and in 2018 became the youngest-ever mayor of the Kingborough Council.
It is reported education spokesman Josh Willie, who has been elected to the lower house after eight years in the upper house, won't contest the leadership.
The party's caucus will meet next week once final election results are known, with a ballot to be held if more than one person nominates for leader.
Mr Winter's nomination has the support of current party deputy Anita Dow.
He said Labor needed to again earn the trust of Tasmanians.
"As bad as this Liberal government has been, Tasmanians were not prepared to elect enough Labor members for us to govern," he said in a statement.
"Too many times over the past 12 months, I've been asked 'what does Labor stand for?'."
Labor has been criticised for opposing contentious plans for a stadium in Hobart but supporting Tasmania's AFL licence which the project is attached to.
Mr Winter said Labor stands for "creating good, well paid, safe and secure jobs".
"It means we back sensible development and infrastructure investment," he said.
"It means we will do everything we can to ensure having a good job enables Tasmanians to own a home and manage the cost of living.
"It means we recognise the workers who keep our essential public services going."
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