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Former speaker of the house Bronwyn Bishop says the two potential coalition candidates for the vacated seat of Eden-Monaro are waiting for the National and Liberal parties to "work out a deal where one of them will run".

NSW Deputy Premier John Barilaro, Federal Liberal Senator Jim Molan, and State Liberal Minister Andrew Constance have all flagged their interest in running for the seat vacated by Labor MP Dr Mike Kelly.

Ms Bishop said if the by-election was a three-way contest, given Liberal preferences often flow to the National Party but not necessarily the other way around, if the Nationals come second to the Liberals, the Liberals' chances "are diminished"

Opposition Leader Anthony Albanese used the opportunity of a question regarding the by-election to take a swipe at Prime Minister Scott Morrison for his popularity in the area during the recent bushfire season referencing how some people refused to shake his hand in Cobargo.

Sky News contributor Nicholas Reece told Sky News host Paul Murray people in that part of the world haven't "forgotten what happened to the prime minister when he visited Cobargo".

Image: News Corp Australia