A staff member of the right-wing NSW Liberal MP David Clarke has stood aside after being linked to a spoof You Tube video involving Adolf Hitler.

Charles Perrottet is the second Liberal Party staffer to stand down over the video clip.

In the clip, the Hitler biopic Downfall has been re-subtitled to portray the Federal MP Alex Hawke as an enraged Adolf Hitler, making reference to a factional stoush inside the state Liberal Party.

A link to the video has been sent to a number of news outlets including the ABC.

The war in the Liberal Party's right-wing has been prompted by a split between the former allies Alex Hawke and the Upper House MP David Clarke.

Before being elected to Federal Parliament Mr Hawke was a staffer for Mr Clarke.

The dispute partly centres on two state seats in Sydney's north-west. Some local Liberals want to depose the Castle Hill MP Michael Richardson and the member for Baulkham Hills Wayne Merton.

Sources have told the ABC that they are angry at Mr Hawke because they believe he is determined to see that Mr Clarke loses his preselection for the Liberal Party in the Upper House.

At the weekend the Nazi clip claimed its first scalp with Malcolm Turnbull's media adviser Thomas Tudehope resigning after being linked to the video.

Now Mr Perrottet, has also stood down while the matter is investigated by the Liberal's State Director, Mark Neeham.

Mr Perrottet and Mr Tudehope both deny involvement in the production or dissemination of the video.

Chaotic meeting

The stoush in the party's right-wing also made the news last month, when police were called to the Castle Hill electorate office of Alex Hawke.

Mr Hawke says about 40 uninvited people were trying to force their way inside during a Young Liberals meeting.

Sources from the opposing faction say they had every right to be there and claim police were only called when Alex Hawke realised his supporters were out-numbered.

Police say 13 officers responded but no action was taken.

Alex Hawke is the MP for the Federal seat of Mitchell. Last month the head of the Mitchell Federal Electoral Conference Tim Abrams quit - sources say he felt he could no longer work with Mr Hawke.

The dispute has angered the New South Wales opposition Leader Barry O'Farrell who last year claimed to have ended the factional warfare in his party.