Incumbent Canberra Liberals leader Alistair Coe could be replaced before the election, according to sources close to the party room.
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Senior ACT Liberal figures confirmed discussions are taking place to canvas the option of a different leadership team, with Elizabeth Lee as leader and Giulia Jones mooted as a possible candidate for deputy.
It is understood that several MLAs have been involved in conversations about changing the leadership.
"She's the one people think can most likely win government for the Canberra Liberals," one source said of Ms Lee.
However, Mr Coe told the Sunday Canberra Times he would not be giving up the leadership.
He said he had a "stable and professional" team.
"Leadership speculation is a perennial feature of political parties everywhere," Mr Coe said.
"We know that under the Hare Clark system it is especially easy for voters to punish individual members who are seen to cause instability."
It is understood the situation has been brewing for months. While background conversations have been ongoing, Liberal Members of the Legislative Assembly have been counting the numbers in recent days.
Sources said the discussions had turned from disquiet to serious consideration for the change, with less than 12 months until the territory election.
As the October 17, 2020 election date edges closer, any change becomes more and more unfeasible, the sources said.
One source said while the party liked Mr Coe as a person, he was an electoral liability.
"I don't think we can win with Alistair as leader," the source said.
Mr Coe hit back, saying with him as leader, the Canberra Liberals were ready to tackle the Labor government in the 2020 election with policies, candidates and funds.
"I am proud of my commitment to freeze rates; the work that I did to expose dodgy land deals that are still under investigation; the establishment of an ICAC; and the fact that the Canberra Liberals will soon have the most diverse team of candidates that the ACT has ever seen."
Mr Coe, a social conservative, became party leader when moderate Jeremy Hanson was ousted following the Canberra Liberals loss at the 2016 territory election.
Public sentiment at the time was that the election was finally in the grasp of the Liberals, as the Labor government had held power for 15 years.
The 2020 election will see the Liberals looking to wrest power from the Labor government after 19 years in opposition. The ACT has been a self-governing territory for 30 years.