Labor is around 750 votes ahead of the Greens in the Melbourne by-election and may claim victory today.
Despite achieving a lower primary vote than the Greens, Labor's Jennifer Kanis was leading the Greens' Cathy Oke late on Saturday night 51.38 per cent to 48.62 on a two-party preferred basis, thanks to preferences.
In the 16-candidate field, Labor received preferences from most of the other candidates including the Sex Party's Fiona Patten (who had 6.61 per cent of the primary votes counted), independent Liberal party member David Nolte (on 4.70 per cent) and head of the African Think Tank, Berhan Ahmed (4.18 per cent).
Independent Stephen Mayne, who had about 4.75 per cent of primary votes, directed his preferences to the Greens.
Opposition Leader Daniel Andrews said he was gratified Labor had finished strongly after many people talked down the party's chances.
"Our position is a much stronger one than the Greens," he said on Saturday night.
"After a long and very hard, tough campaign, Labor is in front."
Ms Oke said the Greens were a grassroots party focused on representing local communities.
"It has been an incredibly positive campaign and that is what has led to our record primary vote," she told cheering supporters in North Melbourne.
An emotional Greens Victorian leader Greg Barber said when former federal Greens leader Bob Brown resigned he felt a "physical sensation".
"This campaign was our tribute to Bob," he said.
Counting of postal votes and early votes began on Saturday night but further postal votes are expected to arrive from across the state next week. Counting will continue on Monday.