Liberal-Nats NSW turf war resolved

A bitter turf war between two senior NSW government ministers has been resolved, with Nationals MP Katrina Hodgkinson withdrawing her bid to run against Liberal Pru Goward in the next state election.

Ms Hodgkinson, the NSW primary industries minister, had loudly voiced her intention to run against Ms Goward in the seat of Goulburn at the election, due early in 2015, after her electorate of Burrinjuck was abolished in a redistribution.

The Nationals MP has now withdrawn her nomination for Goulburn and is expected to run in the newly created seat of Cootamundra.

State Attorney-General and Liberal Greg Smith said he was relieved to hear of Ms Hodgkinson's decision.

"I'm happy - we are a united team," he told ABC radio on Saturday.

"Occasionally glitches come along. The redistribution hasn't been an easy thing in some areas but I am glad they're both running for seats that they will win."

The Liberal Party had warned off its junior coalition partner from contesting Goulburn, saying Ms Goward, the family and community services minister, was "entitled" to run as she is a serving minister.

Liberals had argued that only 35 per cent of the new seat of Goulburn comes from Ms Hodgkinson's electorate and that the name had not changed after the redistribution.

"I am very pleased that Katrina has decided to nominate for the seat of Cootamundra and has withdrawn her nomination for the seat of Goulburn," Ms Goward said in a statement.

"A three-cornered contest in Goulburn would have been extremely damaging for the NSW government."