Former prime minister Tony Abbott has endorsed his sister's bid to enter NSW parliament with the premier also welcoming the news.
Christine Forster, a City of Sydney councillor, has set her sights on the upper house seat of former finance minister Greg Pearce who announced his retirement last week, News Corp Australia reports.
"I certainly think Christine has a hell of a lot to offer," Mr Abbott told 2GB radio on Monday.
"I think she could make a bigger and better contribution if she was in the state parliament."
Ms Forster, who has been engaged to her partner Virginia Edwards since 2013, has been vocal in her support of same-sex marriage and has been critical of her brother's opposition to change.
Mr Abbott noted the two have their differences but said his sister was an "extremely capable" candidate.
Premier Gladys Berejiklian is pleased Ms Forster is throwing her hat into the ring.
"She's an outstanding individual and I welcome more people to come forward - competition is a healthy thing and I encourage everyone to have a go," the premier told reporters in Sydney.
Ms Forster, a Liberal councillor, declined to comment on her potential candidacy.
"Liberal party rules prevent any member from publicly discussing anything to do with preselection matters," a spokesman from her office told AAP on Monday.