Announcing her resignation from the Labor Party, Western Australian senator Fatima Payman said she was "deeply torn" and that her principles no longer aligned with that of the party leadership.

Addressing media persons Thursday, Payman said though it was a difficult decision to make, she could not compromise on this matter.

"With a heavy heart but a clear conscience, I announce my resignation from the Australian Labor party. I have informed the prime minister that, effective immediately, I will sit on the crossbench to represent Western Australia," The Guardian quoted Payman.

During the press conference, Payman said she was "deeply torn" between the pressure from the caucus to accept the party policies and the grassroots party members, who were telling her to "hang in there."

The 29-year-old senator said she will continue in the Upper House as an Independent. She was elected in 2022 for a six-year term.

During the weekend, Labor had suspended Payman indefinitely as she declared to oppose the party again if the situation demanded it. Last week, Payman defied her party to cross the floor when she voted for the Greens' motion recognizing Palestine statehood.

Asked about Payman's suspension, Prime Minister Anthony Albanese was then quoted as saying that Labor will leave the door open for Payman if she was willing to respect collective obligation.

According to Payman, she made several attempts to raise the Palestinian issue with Albanese and other senior ministers, but felt that decisions were made before the members attended the caucus for a formal approval.

Soon after her suspension from the caucus, Payman claimed her party colleagues had ostracized her. On Thursday, Payman said she was receiving "death threats and emails that were quite confronting."

Detailing her conversation with Albanese on Sunday as she was handed her suspension, Payman called it a "tense meeting" when she was given an ultimatum.

"Toe the party line and come back inside the tent, or give the position back to the Labor Party," reported.

Payman also spoke about the intimidating tactics by her senator colleagues, from being escorted to Albanese's office for everyone to see to colleagues refusing to sit next to her.

Payman appeared emotional and spotted wearing a pin of the Aboriginal and Palestinian flag as she announced her resignation from Labor.