Western Sydney Labor MP Emma Husar has threatened legal action over the party's decision to dump her as its candidate in the seat of Lindsay.
NSW Labor's administrative committee voted on Friday to refer the Lindsay preselection to the party's national executive, which would allow former NSW minister Diane Beamer to be installed.
Earlier, Opposition Leader Bill Shorten sealed the fate of Ms Husar, saying he did not want her to recontest.
Ms Husar told the ABC she believed she was the preselected candidate and indicated she would not go without a fight.
"All actions by the ALP are justiciable in the court. I have let them know I'm prepared to challenge them and their handling of it."
"Any attempts to change [my endorsement] would be outside party rules, is my understanding. And the advice I have received."
"I haven't changed my mind:" Shorten
Ms Husar previously announced she would not recontest Lindsay, after former staff made allegations of misconduct.
An internal party investigation upheld claims of unreasonable management, however it dismissed allegations of lewd behaviour and found there was no basis for her resignation.
Ms Husar has since declared she wants to stay.
However, Mr Shorten told reporters in Canberra that her original decision to leave was a good one.
"I thought that was the right decision both for her and the party. I haven't changed my mind," he added.
"I understand [she wants to stay] but I haven't changed my mind."
Husar already suing over stories
On Thursday, Ms Husar spoke in Federal Parliament, announcing she launching defamation proceedings against Buzzfeed over its reporting of the allegations against her.
She claims she was not given adequate time to respond to the claims.
"During the last six months, I've had to bite my tongue and not defend myself publicly whilst being misrepresented," Ms Husar told the House after Question Time under parliamentary privilege.
"I will not wait around for someone else to wait around and show leadership.
"Sunlight is always the best disinfectant and, today, I bathe those misrepresentations in a flood of light."
