Former ACT senator Katy Gallagher will attempt to take back her seat at the next election, but her replacement in the upper house plans to put up a fight.
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Ms Gallagher was booted out of the Senate last month after the High Court found she did not take reasonable steps to renounce her UK citizenship before the 2016 election.
On Friday morning, Ms Gallagher emailed ACT Labor members and supporters to announce she would seek their endorsement to run again for the Senate.
"It wasn’t a straightforward decision, but I spoke with friends and family, colleagues, ALP branch members and of course many Canberrans who took the time to get in touch and share their views with me about what they would like to see me do next," Ms Gallagher said.
"Back in 2014, I left my role as ACT Chief Minister to seek preselection for the Federal Labor Party because I felt that I could make a positive contribution to Labor’s mission, to help elect a Shorten Labor Government and most importantly be in a position to represent the interests of my home town in the national parliament.
"These reasons remain as relevant for me today as they did back then, and so I have decided to put my hand up for preselection for the Senate in the next federal campaign."
Ms Gallagher has been replaced in the Senate by her former running mate David Smith, who was previously the ACT director of Professionals Australia.
Mr Smith confirmed on Friday morning that he planned to hold onto his new seat and would put himself forward for preselection.
"Working people in Canberra deserve a representative who will always stand up for them," he said.
"Before becoming a senator, I spent 14 years standing up for the interests of working people through the labour movement.
"It will now be for the members of the ACT ALP to decide who should represent them at the next election."
Mr Smith said his phone had been "ringing off the hook" since Ms Gallagher's announcement, with Labor Party members telling him they were keen to see him contest preselection.
Senior Labor figures have already thrown their support behind Ms Gallagher.
Senator Penny Wong described her as "a woman of great integrity" and an important part of Labor's Senate leadership team.
"Katy is, quite simply, too good to lose," Ms Wong said on Friday morning.
"Katy’s desire to build on 17 years as a representative of the ACT is a reflection of her ongoing commitment to the Australian public.
"I look forward to welcoming her back to the Senate."
Senior Labor MP Anthony Albanese agreed, telling Channel 9 that Ms Gallagher's announcement would be welcomed by "everyone in Labor's leadership team".
Ms Gallagher's successor as chief minister, Andrew Barr, said he believed Ms Gallagher's decision to run again was "what's best for the ACT Labor Party".
"Penny Wong put it very well, in her words, and I endorse that," Mr Barr told ABC radio's Chief Minister Talkback.
"It's very important for Canberra that we have a voice around the federal cabinet table."
Labor leader Bill Shorten made his support for Ms Gallagher clear ahead of the announcement on Tuesday, saying that she had "an ongoing contribution" to make in public life.
Minutes after Ms Gallagher's announcement, Kel Watt, a member of ACT Labor's right faction, said he would run for preselection in the federal lower house seat of Canberra.
Mr Watt, who joined Labor as a teenager and has been a member of the party for 27 years, was an adviser to former chief minister Jon Stanhope and has worked for federal and state MPs.
"My supporters have asked me to run, saying I represent the best all-round life experience and determination to represent the ALP and community," Mr Watt said.
"My commitment to the people of Canberra and the local community flows through my veins."
