Mr Ryan, a former deputy premier announced his retirement earlier this year. Speaker Telmo Languiller has declared the byelection will be held on March 14.

The Liberal Party administration committee will meet on Wednesday to discuss the byelection and is expected to approve a run at the seat, which the Nationals hold by 15.7 per cent.

Senior sources in the party say they do not expect to win but want to avoid a repeat of the Shepparton state election result which saw the Nationals defeated by independent Suzanna Sheed. They believe their vote will provide insurance for a Coalition win.

Both parties are playing down any animosity between the sides.

Labor is still closely looking at all options, including not fielding a candidate. Senior figures hold concerns about what upside running a candidate has in such a safe seat, given the money it will cost and any swing against the ALP would be unwelcome news for the new premier.

The Nationals have endorsed upper house MP Danny O'Brien as their candidate. The Greens will also field a candidate and will campaign heavily against Coal Seam Gas mining, which is a major concern among many communities in the district.