In a dramatic turnabout, Mr Constance on Wednesday morning released a statement acknowledging people may be confused by his actions, but that he wished to remain focused on bushfire recovery in his current electorate.

It followed a frantic morning in the Twitter-sphere with political commentators and media outlets all speculating on rumours the state Liberal MP and NSW Transport and Roads Minister was withdrawing.

"I wish to let people know I have decided not to contest Liberal Party pre-selection for the seat of Eden-Monaro," Mr Constance said in a statement.

"I need to remain focused on the bushfire recovery and be grateful for the opportunities I already have.

"The community's needs at this difficult time must be the centre of the campaign.

"I appreciate people will be confused by my actions over the past couple of days, and for that I am sorry.

"I also have unfinished business as Transport and Roads Minister. I want to deliver crucial life-saving reforms in road safety and a safer, cleaner future in public transport.

"I want to thank the Premier for her incredible support and will continue to lead the bushfire recovery in my community by working with her, Commissioner Shane Fitzsimmons and the recovery coordinators Dick Adams and Andrew Colvin

"As Bega MP I will be supporting the Liberal campaign and ask the people of Eden Monaro to reflect on the benefits of having a member of the Federal Liberal Government."

Bega Valley councillor Kristy McBain is Labor's candidate for the by-election, while Liberal candidate at the 2019 election Fiona Kotvojs is understood to have nominated for her party's pre-selection process.

A spokesperson for Liberal Senator Jim Molan, previously touted as a potential nominee for part pre-selection said "the senator is keeping his options open".