A former high-ranking NSW Liberal is warning ongoing preselection "games and chicanery" could propel him to back Liberal-aligned independents.
Millionaire Matthew Camenzuli has threatened to form an alliance of independents that would target seats like Epping and Hornsby, held by Premier Dominic Perrottet and Treasurer Matt Kean.
The ex-state executive member, who took former Prime Minister Scott Morrison to court over preselections ahead of the federal election, said he had a loyal and growing support base of members who felt the party was "not listening".
Mr Camenzuli was expelled from the party earlier this year, and fears history is repeating itself.
"A lot of members and others thought that we'd have a more sensible position from the state leadership. Sadly, it seems as though it's the same sorts of games and chicanery," Mr Camenzuli said.
"A bunch of people have, out of frustration, come together and we're saying look, if we're not going to get democratic selections inside of the party, maybe we can run some independents that reflect the community and the values of the people."
Mr Camenzuli is proposing Choice 200, a collective made up of candidates that support core issues like cost of living, housing and cheap and reliable energy.
"The idea is it's community-based people, prominent people and ordinary Australians, that have had a little bit of a gutful of the current state of play politically," he said.
In a statement, a Liberal Party spokesperson said it was "focused on running a positive campaign" and "talking to voters" about its plans.
"Only the Perrottet government has a plan to support New South Wales families by growing the economy, boosting their budget, strengthening frontline services and investing in our communities," they said.
"The endorsement and announcement of candidates across the state is proceeding at pace, with many locals in the field campaigning in their local communities."
In Mr Camenzuli's court challenge, he argued a federal takeover of the NSW Liberal Party's preselection of candidates meant they were not properly endorsed.
But his legal challenge failed when the High Court dismissed it and cleared the path for Mr Morrison to call the election.
Mr Perrottet had been involved in the intervention at the time and acknowledged the failures, with some candidates given only weeks to campaign.
In recent weeks, a number of preselections have left many members in shock.
Noel McCoy from the right faction and favourite to replace retiring Minister for Transport David Elliott was excluded by the party's nomination review committee.
In the seat of Davidson, in Sydney's north shore, the party suffered a blow to its female representation when Minister for Roads Natalie Ward failed in her bid for preselection.
When questioned about Mr Camenzuli's threat, Minister for Tourism, Aboriginal Affairs, the Arts, and Regional Youth Ben Franklin refused to comment on "internal Liberal party matters".
But the Nationals MLC insisted comparisons could not be drawn between the state government and the former Morrison government.
"What I would say is I think the people of New South Wales are going to focus on what's important at the next election and that is a government, a Liberal Nationals government, which is delivering," Mr Franklin said.
"I think that we're very different to the federal government, or the former federal government."
Opposition leader Chris Minns said he did not "really know the internal workings of the Liberal Party" but slammed its candidate selection.
"The candidates that they're producing seems like they're on the right wing, extreme right wing of the political spectrum," he said.