The former Liberal powerbroker caught up in the Lindsay Islamic leaflet scandal that contributed to John Howard's election defeat has won a $1 million contract with the Baird government to raise awareness about graffiti.

The contract, which is a significant boost in spending, has been signed with a new entity called Graffiti Removal Australia.

Jeff Egan, former NSW Liberal Party state executive member.

Jeff Egan's consulting firm Flagship Communications is listed as the sub-contractor, and financial beneficiary, of the $1.06 million three-year contract to run Graffiti Removal Day, according to the NSW government contracts website.

Mr Egan was a delegate to the Liberal's federal council last year and was an unsuccessful Liberal candidate in this month's Blue Mountains council election.