Anthony Albanese prepared to use intervention powers in Labor?s Parramatta preselection battle

The federal Labor leader, Anthony Albanese, is prepared to override local branches to determine who will run in the key marginal electorate of Parramatta, amid allegations of unresolved branch stacking in the seat.

The move to replace the outgoing MP, Julie Owens, comes as the party's left faction splits over whether to allow a rank and file ballot, and as the right faction makes a bid for the seat, arguing it needs compensation after Hunter was given to the left's candidate, Dan Repacholi.

The soft left, or "Ferguson left" named after powerbroker Laurie Ferguson, which controls branches in the seat, is pushing for a rank and file ballot, but their support is said to be split between Granville state Labor MP Julia Finn, and Durga Owen, who ran for the state seat of Seven Hills at the last state election.

Neither candidate is seen as acceptable to the federal executive, with Albanese's hard left faction arguing for a federal intervention to install Australian Manufacturing Workers' Union legal director Abha Devasia unless the soft right comes up with a better candidate.

Other candidates understood to be in the mix include former East Hills candidate Cameron Murphy - the son of high court justice and Whitlam government attorney general Lionel Murphy - and Liverpool city councillor Charishma Kaliyanda.

It has been reported that the former state MP David Borger has knocked back requests to run.

The use of federal intervention powers would spark a backlash among local branch members who have been calling for a rank and file ballot to decide who will contest the key seat, held by Labor on a 3.5% margin.In her valedictory speech to parliament, Owens paid tribute to the "remarkable" branch members in the seat who had supported her since her election in 2004 and said she had made clear to Anthony Albanese her preferred successor.