Outgoing senator spruiks replacement

Outgoing Liberal senator Arthur Sinodinos has picked former federal MP Peter Hendy to take his place, putting him at odds with the prime minister.

Senator Sinodinos, who is set to become Australia's next ambassador to the United States, has spruiked Mr Hendy as his replacement to party preselectors, the Australian Financial Review reports.

Senator Sinodinos' recommendation contradicts Prime Minister Scott Morrison's choice, conservative former Army major-general Jim Molan.

Mr Molan lost a senate race in the 2016 election but replaced Nationals Senator Fiona Nash during the citizenship scandal in 2017.

But he failed to retain his seat in May after being placed fourth on the Coalition senate ballot.

He has said he would only stay on until Sinodinos' term was set to expire.

Mr Hendy took the swing seat of Eden-Monaro in 2013 but lost to Labor MP Mike Kelly at the next election in 2016.

Both Mr Hendy and Mr Molan have strong ties to the Queanbeyan region, the border town east of Canberra.