The Liberals'strong result at the NSW election has given the party fresh hope of retaining it with the right candidate.
The Liberal MP and former minister was a close ally of Malcolm Turnbull,and had described last year's coup as"the worst of politics".
The Prime Minister is still searching for a candidate for the Strathfield seat,which is set to be vacated by former minister Craig Laundy just weeks out from an election.
Sources close to Mr Laundy said the MP had already made up his mind to quit but the announcement was being kept secret.
Colleagues are increasingly frustrated at the Malcolm Turnbull ally's refusal to declare whether he will stay in federal politics.
Former NSW deputy police commissioner Nick Kaldas is being courted to run for the Liberal Party in the federal seat of Reid.
Linda Reynolds will be catapulted into cabinet after Christopher Pyne and Steve Ciobo decided to quit at the next election.
Liberals fear former minister Craig Laundy will be the next Coalition federal MP to quit politics ahead of the election,as questions linger over a number of senior figures.
Asked how his colleagues should respond to such commentators,Craig Laundy said:“Ignore them.”
Business groups and unions will press incoming workplace minister Kelly O'Dwyer to tackle stagnant wages growth and the need for reform of industrial relations rules.
A new small business minister has been appointed in Scott Morrison's overhaul and the role has been returned to cabinet.