Former NSW Premier Kristina Keneally plans to switch from the Senate to a safe Lower House seat in western Sydney at the next federal election.

Senator Keneally, who is close to Opposition Leader Anthony Albanese and is understood to have the backing of NSW Labor power brokers, is likely to be preselected for Fowler and replace Chris Hayes, who is retiring due to health issues.

The move ends an increasingly bitter internal battle over Labor's NSW Senate ticket.

Ms Keneally is the Opposition's current Deputy Senate Leader, yet despite her position in parliament and high profile in Canberra she has been locked in a tussle with fellow right-faction member Deb O'Neill for top spot.

The loser was expected to struggle to be re-elected. Second place on the ticket will likely be given to left-faction incumbent Jenny McAllister and the party's primary vote would have to increase more than expected for Labor to win a third spot.

Presuming the move is successful, Ms Keneally will play a prominent role in the Lower House and is likely to be one of several people mentioned in leadership speculation, should Mr Albanese fail to win next year's election.

Allies of Senator Keneally believe she could serve as a high-profile "attack-dog" role during parliamentary proceedings, a role she is thought to relish.

She is currently the Opposition's Home Affairs spokesperson and has a shadow portfolio role called "government accountability."

In recent days, Senator Keneally has been meeting community leaders and Labor figures in Fowler, a seat which includes Liverpool, Fairfield and Cabramatta. It's understood she now intends to move to the electorate.

Senator Keneally currently lives in the northern beaches of Sydney, but as NSW Premier she represented the state seat of Heffron, which takes in the suburbs of St Peters, Tempe and Alexandria.

In 2017, she unsuccessfully contested the federal Sydney electorate of Bennelong at a by-election, however her prospects of winning are much better this time.

Labor has held Fowler since it was created in 1984 and current retains it by about a 14 per cent margin.

Incumbent Chris Hayes had wanted local lawyer Tu Le to be endorsed, arguing the party needed to reflect the multicultural seat.

In March he told the ABC, Ms Le was "intuitively" in touch with the needs of the electorate, having grown up in western Sydney.

"It would be sensational to be able to not only say that we in Labor are the party of multiculturalism, but to actually show it in our faces."

But Senator Keneally, who is close to Mr Albanese, has substantial support from powerbrokers and is regarded as a key member of a possible future Labor Government.

There has been speculation Senator Keneally could be parachuted into the seat for some time, even though she has previously ruled out the move.

Senator Keneally was born in the United States, grew up in Ohio and still speaks with an American accent.

She became an Australian citizen in 2000 and renounced her US citizenship in 2002, before running for NSW state politics.

Her office declined to comment on her lower house move.

It is expected to be formally announced in the coming days.