ALP race for Gillard's seat 'not on merit'

The shortened preselection process for Julia Gillard's seat of Lalor has made it difficult for Labor to select a representative based on merit, one of the withdrawing candidates says.

Sandra Willis, the daughter of Keating-era treasurer Ralph Willis, withdrew her candidacy for Lalor on Monday, citing frustration with the preselection process.

She said while members had to pay their dues to be entitled to vote, some candidates in the western Melbourne electorate were given exemptions, allowing them to stand in the seat without being a financial member of the party.

"I have withdrawn because ineligible candidates and non-financial members of the ALP have been given special dispensation to stand for preselection and a truncated rank-and-file process has been put in place," Ms Willis said in a statement.

The party membership of Joanne Ryan, who is the favourite for preselection with the former prime minister's backing, lapsed in 2010.

But at the weekend, the ALP national executive removed any obstacles for Ms Ryan's eligibility.

Ms Willis expressed frustration that the preselection process has been reduced to just one week.

"It makes it very difficult for ... the members of the ALP in Lalor to pick their candidates based on merit and having actually seen them in some form of action," Ms Willis told AAP.

She refused to be drawn on which remaining candidate she supported, but said it is important that a woman contests the seat.

Ms Willis's withdrawal comes after young diplomat Lisa Clutterham abandoned her campaign following a radio interview in which she revealed no connection to Melbourne. She has been an ALP member for less than a month.

Health Services Union official Kimberley Kitching has also withdrawn from the race.

Both departing candidates have backed Ms Ryan, a former primary school principal from the area.

The two other remaining candidates confirmed as nominations by the party are local residents Brian Dunn and Theresa Sgambaro.