Premier Mike Baird insists Tony Abbott will "play a role" in the NSW election, but will not say whether he would like the unpopular prime minister campaigning alongside him.
There are concerns among NSW Liberals they could face a similar voter backlash in the March poll as in Victoria and Queensland, where first-term conservative governments have been voted out.
The losses have been partly blamed on voter dissatisfaction with Mr Abbott.
Mr Baird, who was asked repeatedly on Wednesday whether he would be happy to have the PM campaign with him during the state election, would say only that Mr Abbott would "play a role".
"The federal government has played an important role in helping us to fund infrastructure," the premier told Fairfax Radio.
"They've put forward billions of dollars that is going to take this state forward.
"So of course Tony Abbott and the federal government, as they've supported us in that, would play a role (in the campaign)."
His comments come amid a warning from former Victorian premier Jeff Kennett that Mr Abbott's "terminal" leadership risks hurting his Liberal counterparts in NSW.
"Stop the bleeding quickly ... and move on," Mr Kennett tweeted.
"(We) do not want to put (at) risk the return of the very good NSW government."
Meanwhile, Mr Baird said he was pressing ahead with his plan to partially privatise the state's electricity distribution assets despite a voter backlash against a similar asset sell-off in Queensland.
The premier is taking his plan to lease 49 per cent of NSW's poles and wires for 99 years to the March election, claiming it would raise $20 billion to be spent on roads, hospitals, roads and transport.
"I am determined to fight for it," the premier said, adding that the plan was a "win-win" for the state and would bring downward pressure on electricity prices.
"My sense is that the electorate actually want politicians, a government to be honest with them.
"Well I'm being honest with them. I'm not trying to hide this, I'm not trying to sneak it through."
Mr Baird also dismissed concerns that the assets could be snatched up by state-owned Chinese companies.
"I'm happy with international capital," he said.
"If you want to get the best possible price, you obviously need the most competition - whether it be from Asia or the UK or US."
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