NSW Liberal MP Tim Owen is the state corruption watchdog’s latest scalp.

The member for Newcastle has announced he is quitting politics in light of allegations aired against him at the Independent Commission Against Corruption (ICAC) hearings in Sydney.

At a short media conference on Monday, Mr Owen agreed banned donors “probably” contributed to his 2011 political campaign.

The MP said he wouldn’t contest next year’s state election because of recurring health issues and the ICAC’s revelations.

Mr Owen said he had given his “heart and soul” to Newcastle but declined to answer questions from the media.

Premier Mike Baird spoke to Mr Owen over the weekend and was informed of his decision.

“(The premier) has no further comment,” Mr Baird’s spokesman said in a statement.

Before entering parliament in 2011, Mr Owen had a distinguished career in the Royal Australian Air Force.

He was the deputy commander of the Australian forces in Afghanistan and Iraq from October 2008 to May 2009.