PAULINE Hanson says she is seeking a seat in parliament at the September election to hold Tony Abbott - the man she accuses of helping to put her in jail - to account.

Speaking to News Limited this morning Ms Hanson, who co-founded the controversial One Nation party in 1997, said she would run as an independent in either Joel Fitzgibbon's NSW electorate of Hunter or in her current Queensland base of Coleyville, south of Brisbane.

Ms Hanson, 58, said she felt it was important for her to be back in federal politics so the Coalition, if elected, did not have a free run to pass legislation.

"I believe Tony Abbott is going to walk in, the Liberal party is going to win," Ms Hanson said this morning.

"It's important I be there again to create the debate, to make sure they are listening to the Australian people."

Ms Hanson said Mr Abbott had acted against her by setting up a fund to bankroll legal action against One Nation that ultimately saw her and her fellow party co-founder, David Ettridge, jailed in 2003.

They were convicted of electoral fraud, but the ruling was subsequently overturned and they were released several months later.

"It was a horrifying experience - I will never forget it," Ms Hanson said.

"Tony Abbott should have left it up to the voters decide and not done what he did. He destroyed my political career."

Ms Hanson said she had "strong connections" to the NSW electorate of Hunter including owning property in Maitland and having family in the region.

"It's not just where I'm thinking of standing, it's where I want to decide to live the rest of my life," she said.

However Ms Hanson said she hadn't yet made her final decision as to exactly where she would seek election, and would announce a formal position in coming months.

"It will be the Hunter or Queensland," Ms Hanson said.

Ms Hanson currently owns a home in Coleyville, south of Brisbane, which lies in the electorate of Wright held by the Liberal National Party's Scott Buchholz on a margin of 10.15 per cent.

The Hunter is held by former government whip Joel Fitzgibbon, who was one of Kevin Rudd's key backers in last month's leadership showdown, on a margin of 12.48 per cent.

In 2010 Ms Hanson put her Coleyville property on the market and was planning to resettle in Britain, but told media she would not sell her home to a Muslim.

Overnight, it was revealed that Ms Hanson's One Nation co-founder David Ettridge was seeking to sue Opposition Leader Tony Abbott for more than $1.5 million in damages.

He has accused Mr Abbott of acting unlawfully in 1998 by assisting and encouraging litigation against One Nation in the Queensland courts.

Mr Ettridge alleges the court action was false and malicious and the resulting damage affected him greatly.

Mr Ettridge's lawyers served legal papers on Mr Abbott for damages on the weekend.

A spokesman for Mr Abbott said the papers had been received.

A directions hearing is set for the Brisbane Supreme Court on May 9 and Mr Abbott has received a summons to attend.

"Before Tony Abbott can become prime minister of Australia he needs to be judged on his suitability to hold the highest office in Australia," Mr Ettridge said in a statement.

"For his role in this disgraceful period of Australian political history, Tony Abbott has never been brought to account."

Ms Hanson said she endorsed the action, but was not a party and would not benefit from any successful suit.

Tony Abbott today described the legal action by Mr Ettridge as a "sideshow" and said he was not worried about the law suit.

"Obviously there are still some hard feelings from those days, but the matter is now before the courts and I am confident that everything I did back then was justifiable and could be justified," Mr Abbott said.

The Opposition Leader said he "absolutely complied" with all of the obligations on him when he raised $100,000 to help fund court cases against One Nation and had already been cleared twice by the Australian Electoral Commission.

"I was never particularly critical of One Nation supporters, but I certainly thought back then that it was a dodgy party and that position of mine was vindicated by the courts," he said.

"This is a matter which will obviously be discussed with various legal representatives and I think its fair to say this is going to be just a bit of a sideshow and I try not to get involved in sideshows if I can avoid it."