Former Liberal Party minister Craig Laundy has told colleagues he wants to quit politics but has been urged to delay any announcement until a candidate can be found for his marginal western Sydney seat of Reid.

While there is still some hope within senior levels of the government that Mr Laundy will recontest, senior sources said it was more than likely that he would walk.

Mr Laundy holds his seat by 4.7 per cent and it would be at high risk of falling to Labor should he leave.

Craig Laundy has been urged to stay on until a replacement can be found. Dominic Lorrimer

With Prime Minister Scott Morrison to call the election in less than a month, and with Labor's candidate Sam Crosby working the seat hard, the general view in the Coalition is that the seat will be lost unless Mr Laundy stays on.

Mr Laundy was angry over the dumping of Malcolm Turnbull and has gone to ground in recent weeks, declining to return calls from the media or colleagues.