South Coast writer and former party member Gail Morgan looks set to run against Gareth Ward for the Liberal party in the seat of Kiama.
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Party sources have said Ms Morgan is going through the vetting process at the moment before her candidacy is officially announced.
According to her website, Ms Morgan is the author of five books, including Promise of Rain and Patent Lies.
Born in 1953, Ms Morgan grew up in Sydney and travelled the world before eventually settling in Kiama.
It is understood that, because she is not currently a member of the Liberal Party, she will be given a waiver that will allow her to run.
Another candidate - former United Australia Party member Benjamin Britton - was also understood to have nominated to be the candidate.
However, he was not granted a waiver and local party sources said they had not seen him and "wouldn't know him from a bar of soap".
Mr Britton would have been an unusual selection for the party given he ran under the UAP banner for the federal seat of Cunningham at the last federal election.
In that campaign, he ran against the Liberals' placeholder candidate in Marcus Uren.
A local Liberal source hinted that Ms Morgan could be filling a similar role as Mr Uren, describing her as a "flag bearer only" and unlikely to knock over Mr Ward.
Some have questioned the wisdom of the Liberals running a candidate in Kiama, citing concerns it may split the vote and hand the seat to Labor.
Mr Ward, the Kiama incumbent formally announced he would contest the March election on Friday.
In January NSW Premier Dominic Perrottet said "the Liberal Party is going to win the seat of Kiama".
He repeated that claim over the weekend, while glossing over questions about whether the Liberals would be sending preferences the way of Mr Ward.
However, with the optional preferential voting system in place for the NSW election, there is the possibility the Liberals will operate on a "vote 1" policy and not send preferences to anyone.