Queensland Premier Annastacia Palaszczuk has announced her retirement at a press conference on Sunday.

Ms Palaszczuk was elected in 2015, following the loss of the one-term Campbell Newman Liberal National government.

She will officially step down as premier next week.

A three-way contest between Deputy Premier Steven Miles, Health Minister Shannon Fentiman and Treasurer Cameron Dick will decide who takes over as leader.

Ms Palaszczuk endorsed Mr Miles, saying he has been “a fantastic, steadfast deputy”.

“I will be giving my strong endorsement to Steven Miles to be the new premier of Queensland.”