Liberal MP Craig Laundy has told Scott Morrison he plans to quit politics but the decision has been kept secret while the Prime Minister finds a candidate to parachute into the seat.

Several people close to Mr Laundy told The Sydney Morning Herald and The Age that the former minister – who was a strong ally of Malcolm Turnbull – had long ago decided not to recontest his marginal Sydney seat of Reid.

Scott Morrison and Craig Laundy handle fruit at the Homebush markets in 2017. Credit:AAP

They said Mr Laundy has not declared his decision because Mr Morrison wants to recruit a replacement first and announce the move as a "double whammy", rather than leaving local preselectors to fill the vacancy.

The Prime Minister is said to be courting former deputy police commissioner Nick Kaldas for the seat. The Liberal Party conducted polling last week to gauge support for Mr Kaldas in an attempt to convince him to run.