Abbott reforms shot down in NSW

A motion designed to empower Liberal Party members and prevent factionalism has been shot down in Sydney, despite having the backing of two former prime ministers.

NSW state delegates voted down the Warringah Motion - also known as the Rosehill Resolution - on Saturday at the NSW Liberal AGM, opting for a compromise.

The more moderate Bennelong Motion was voted in, giving party members a say in preselections for the lower house, but leaving the state council in control of the state upper house and federal Senate.

After the vote Mr Abbott told reporters outside Sydney's Town Hall that while his motion was not passed, he was pleased there had been some reform.

"Its not everything the members wanted but nevertheless it is an important reform," Mr Abbott said.

One angry Liberal member predicted a revolt at a grassroots level.

"I think there will be a revolt, there were people that were sitting behind me that decided they were going to leave the Liberal Party because of it," the woman, who did not identify herself, said outside the AGM.

"NSW won't have a Liberal Party the way its going."

In his speech to the AGM earlier in the day, Prime Minister Malcolm Turnbull called for members to have a greater say in the Liberal Party, however it is understood he supported the more moderate Bennelong Motion.