Toole's defeat in a party room meeting today comes after MP Ben Franklin claimed the then-leader had supported his bid to nominate for president of the upper house.
Saunders said it had been an "extremely difficult 24 hours" as he confirmed his appointment and thanked the party room for its support.
He said Toole has been "a great servant of regional New South Wales" but it became evident his leadership was in "a tenuous position" this morning.
"The party room had some decisions to make and the party room has now spoken," he said.
"This wasn't an easy decision to make and it unfolded during the day as people started talking about what the options were and how things felt in the party room.
"I'm not going to discuss exactly what was talked about but I think many of you are aware that there were concerns that were being raised and it was felt by the room that there needed to be change and that's what happened."
Saunders said the party intended to "put all of the things that have been happening for the past couple of weeks behind us" and move forward.
"Albeit, we have an interesting day tomorrow ahead of us as far as parliament resuming for the first time and there will be some angst around what that means for the party," he said.
"We will deal with that as we need to."
Franklin came under fire last week when it emerged he was considering the role as it would give Labor an effective majority in the evenly balanced upper house.
"I'm frustrated because Paul hasn't been honest about what took place here," Franklin said.
"I thought the leader of the party was happy with it, and I was acting under that assumption."
A ministerial salary is paid for the role, which also gives the upper house president a driver, three staff and a dining room.
Saunders lost to Toole by a single vote when the party decided its leadership in the wake of the Coalition's loss at the NSW election.
https://news.google.com/rss/articles/CBMisgFodHRwczovL3d3dy45bmV3cy5jb20uYXUvbmF0aW9uYWwvbmF0aW9uYWxzLWxlYWRlcnNoaXAtc3BpbGwtc3BlY3VsYXRpb24tYWZ0ZXItcGF1bC10b29sZS1hY2N1c2VkLW9mLWx5aW5nLW92ZXItdXBwZXItaG91c2UtZGVhbC1uc3ctcG9saXRpY3MvYjhiYzg2MjUtYWIyMC00NzdiLWIxZGMtMTExMzNjZmM1MGEx0gFFaHR0cHM6Ly9hbXAuOW5ld3MuY29tLmF1L2FydGljbGUvYjhiYzg2MjUtYWIyMC00NzdiLWIxZGMtMTExMzNjZmM1MGEx?oc=5
2023-05-08 08:03:33Z
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