The Victorian Liberals have preselected a party loyalist and business consultant, Gladys Liu, to contest the marginal electorate of Chisholm, with incumbent Julia Banks set to quit.

Ms Liu was one of only two female candidates and has been an avid party fundraiser.

In the 2016 election she spearheaded a controversial WeChat campaign targeting Chinese-Australians.

The decision comes amid senior Liberals' concerns about the need to select another woman after Ms Banks quit amid allegations of bullying and intimidation during the leadership spill.

The outspoken first-term MP has not ruled out running as an independent.

In an earlier statement to Fairfax Media, Ms Banks said "My focus is on my constituents and always has been, and I always keep my options open."