NSW Liberals are hopeful a deal to endorse a list of election candidates will stave off deeper federal intervention.
A factional battle, which also included court action, has left the NSW division of the party without endorsed candidates in key federal seats, including those of Morrison government ministers Sussan Ley and Alex Hawke.
A federal election is expected to be held in May.
Members of the NSW state executive are on Wednesday voting on a motion that would allow the endorsement of Ms Ley, Mr Hawke and North Sydney MP Trent Zimmerman.
The motion also includes the endorsement of candidates Alex Dore (Hughes), Michael Feneley (Dobell), David Brady (Warringah), Maria Kovacic (Parramatta), Pradeep Pathi (Greenway) and Jerry Nockles (Eden-Monaro).
A six-page document circulated to executive members spells out in detail who are the nominees and why they should be endorsed.
A ballot was due to be completed at 11am on Wednesday.
But it is understood the ballot is unlikely to get the 90 per cent vote required for it to pass.
NSW Liberals president Philip Ruddock is still expected to present it to the federal executive, which will meet on Friday.
It is understood many state executive members are keen to avoid a full federal takeover of the division, which could mean an administrator effectively runs the campaign for the state election due in March 2023.
The party division is divided into three factions – the moderates, the hard right and the soft right.
There is also strong interest in putting in place a candidate selection timetable, and improved processes, soon after the federal election is held to avoid the problems of the past months.