New South Wales Liberals are furious over Scott Morrison’s decision to parachute in former Labour president Warren Mundine, for the local seat of Gilmore.

Grant Schultz, who was picked as the candidate eight months ago, as replacement for sitting member Ann Sudmalis who is quitting politics, has slammed the move as undemocratic.

Liberals won the Gilmore seat by 1500 votes in 2016, and some fear their treatment of Mr Schultz, who is now running as an independent, could cost the party their seat.