Labor leader Anthony Albanese has told a Sydney court that the former NSW minister Ian Macdonald wanted to remain in Cabinet because he believed he made a "good minister," and wanted to attend the 2008 Beijing Olympics in an official capacity.

Mr Albanese, who attended a lunch between ALP powerbrokers in February 2006 to discuss Mr Macdonald's preselection for the following year's election, said he went into the meeting with the expectation that he would be allowed to contest the election.