Former federal Liberal frontbencher Sophie Mirabella ends months of speculation by announcing she will seek preselection in her old Victorian seat of Indi.

Mrs Mirabella lost the seat she held for 12 years in the last federal election to independent Cathy McGowan.

The Liberal preselection nomination period ends on May 22 and a candidate for Indi will be chosen next month.

Ms McGowan would not be drawn on the possibility of contesting Indi against her predecessor.

"I welcome all candidates and I'm looking forward to an election where there's a diversity of people and positions," she said.

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Ms McGowan said the people in her electorate were keen to engage all parties in a debate on policy.

"There's an active conversation happening right across the electorate about policy and what does a community need to be able to position ourselves for the future," she said.

"I'm really looking forward to the election and a chance to actually have that debate and then for the people of Indi to be able to choose the policies that are going to work best for them."

Ms Mirabella confirmed the nomination on Sunday but said she would not make further comment until the preselection process was completed.

Former Victorian Liberal Premier, Jeff Kennett, said Mrs Mirabella had to address a range of issues he believed cost her a seat at the last election.

"She's going to have to become a lot more inclusive than she has been in the past," Mr Kennett said.

"That's a decision that'll be made by those who sit in her preselection convention.

"If she wins [preselection], she's got to win the support of the majority of the community."