The frontrunner to take over the safe Labor seat of Canberra is poised to quit the race amid claims Prime Minister Kevin Rudd was about to personally intervene in the contest.
ACT Education Minister Andrew Barr's chief of staff, Michael Cooney, was preselected as the Centre Coalition factional candidate for Canberra on March 8.
He defeated Jenny Hargreaves, the wife of Labor MLA John Hargreaves, in a close ballot that was also contested by Mary Wood, a staffer for federal MP Tanya Plibersek.
It is understood that Mr Cooney will withdraw from the race in the next few days and throw his support behind Ms Wood.
A spokesman for the Prime Minister said Labor party preselection was a matter for the ACT ALP.
But the sources insist Mr Rudd has taken a personal interest in the contest of Canberra, which is being vacated by Annette Ellis at the next election.
In recent weeks, several Labor sources have told The Canberra Times that several members of the federal Labor caucus were unhappy with MrCooney's bid to be the next Member for Canberra.
At least five other candidates are running in Canberra, with Gai Brodtmann, who is running as a ''broad right'' candidate, thought to be the leading candidate. If Mr Cooney withdraws the factional landscape will alter significantly.
Mr Cooney was unavailable for comment last night.
For more on this story, see the print edition of today's Canberra Times.