Melanie Gibbons soundly beaten by Tina Ayyad in battle for Liberal Party preselection for Holsworthy

Melanie Gibbons has been dumped from the Liberal team for the state election after 12 years in State Parliament.

Ms Gibbons was soundly defeated for Liberal Party preselection for the seat of Holsworthy, which covers part of the Menai area.

Tina Ayyad, who is married to Liverpool mayor Ned Mannoun triumphed in a battle between factions, which followed changes to the seat boundaries by an electoral redistribution.

Ms Gibbons may be thrown a political lifeline with a position in the upper house. Premier Dominic Perrottet said he expected the NSW Liberal Party would "resolve the matter."

In 2021, Ms Gibbons announced her intention to leave State Parliament after being encouraged by former prime minister Scott Morrison to seek to represent the Liberals in the federal seat of Hughes at the 2022 election.

However, after a chaotic preselection process in Hughes, the party imposed Jenny Ware as the candidate.

Premier Dominic Perrottet reportedly promised Ms Gibbons a ministry if the Coalition retains office.

Mr Perrottet said on Friday, "There's no doubt Melanie Gibbons is a great local member, she's a great member of our team and has a very bright future in the parliament serving the people of NSW. My expectation is that the NSW Liberal Party will resolve the matter."

The Leader revealed in October Ms Gibbons was in danger of losing preselection for Holsworthy at the March 2023 state election as a result of factional warfare,

An adjustment of seat boundaries since the last election resulted in a reallocation of branches in the party's state electoral conferences.

This has led to claims of "stacking" and decisions being made to suit factions rather that what is more sensible geographically.

Ms Gibbons served two terms on Sutherland Shire Council before winning the state seat of Menai in 2011.

In 2014, an electoral redistribution abolished the seat of Menai and created the new seat of Holsworthy.

The latest boundary adjustments in Holsworthy have resulted in the Liberal margin rising from 3.3 per cent to 6 per cent.

The seat has regained parts of Sutherland Shire, which were lost in the previous redistribution.