Bronwyn Bishop says she will recontest her seat of Mackellar, telling Liberal Party supporters on Sydney's northern beaches that the "threat of terrorism" had convinced her she needs to remain in Parliament.

The 73 year-old former Speaker told guests at a Christmas drinks party at her Newport home on Tuesday evening that she had been "exonerated" over the "choppergate" expenses scandal and was energised to serve another three year term as an MP.

Mrs Bishop's future has become a source of angst up to the highest levels of the Liberal Party and her decision to abandon Tony Abbott when his leadership came under attack has dented her grip on the local Liberal branches – described by one Liberal as once being "North Korean" in its dominance.

"They massively have the shits with her for voting for Turnbull," said a Liberal source, referring to branches in Mackellar closest to Mr Abbott's neighbouring electorate of Warringah.