Former minister for defence materiel Mike Kelly is interested in replacing former foreign affairs minister Bob Carr in the Senate.

Senator Carr is tipped to quit after Labor's loss, despite being elected for a six-year term.

Dr Kelly lost his New South Wales Lower House seat of Eden-Monaro to Liberal Party candidate Peter Hendy by fewer than 1,000 votes at the election.

Dr Kelly says he would like to recontest the seat at a future election and remaining in Parliament as a senator could be beneficial.

"To stay in the Parliament would enable me to keep my options open for making another run at Eden-Monaro in the future given that it was so close and given my personal support was from here," he said.

"I haven't made up my mind yet but these are the arguments that have been put to me."

Dr Kelly says a lot of people have urged him to put his hand up if a casual vacancy in the Senate comes up.

"The arguments that they've put to me about it include the fact that I could then be in the Senate prosecuting our case on security policy against a very weak security team in the Coalition," he said.

"The Defence Minister is in the Senate and the defence accountability processes take place there most effectively in Senate estimates.

"I could help build a security policy for the next campaign."

Dr Kelly says he wants to continue serving the community in one way or another.

"Since I was a young man I've always thought the most fulfilment I could get in life was through service," he said.

"So now I've just got look for the area where I can make the most difference. I can't stand being idle."