Voters in the Darwin electorate of Nightcliff went to the polls on Saturday in a by-election called after Greens MP Kat McNamara resigned, citing health reasons.
She won the Green's first and only seat in the Northern Territory parliament by 36 votes at the 2024 poll, when the former Labor government was reduced to four members in the 25-seat legislature.
At the close of counting on Saturday night, Labor's Ed Smelt led the Greens' Suki Dorras-Walker by 141 votes after preferences.
ABC election analyst Casey Briggs said Labor was likely to win as the Greens needed around three-quarters of the remaining votes to win, which was highly unlikely.
Ms Dorras-Walker was ahead of Mr Smelt on the primary vote, 1220 to 1051, with the Country Liberal Party's Anjan Paudel on 738 and independent Phil Scott on 629.
Mr Smelt thanked supporters on Saturday night, saying Labor was ahead but not claiming victory.
Former Labor chief minister Natasha Fyles lost Nightcliff despite previously holding it by a margin of 24.3 per cent.
Before the by-election, Charles Darwin University political economist Rolf Gerritsen told AAP it was a vital seat for Labor because it was extremely hard to win a territory election without any metropolitan members.
Labor's four MPs are all from bush seats, where the Indigenous vote stayed with the party.
Voter turnout in the by-election was low, at under 67 per cent compared to 76.6 per cent in the 2024 election.
The CLP's tough law-and-order pitch resonated with voters in 2024 and community safety remained a concern, candidates reported after weeks of door knocking for the by-election.
The environment was also a key issue in the progressive seat, where many educated, young professionals live.
Territory Labor recently changed its position on the controversial Lee Point defence housing development in bushland in Darwin's north, saying it now supported a moratorium on further works.
Environmentalists and traditional owners have conducted a long campaign against the project.
Mr Smelt admitted Labor didn't get it right on the issue in its last term in government.