Tony Nutt is poised to replace Brian Loughnane as federal director of the Liberal Party in a move that would complete the purge of the power triangle involving his wife Peta Credlin and former prime minister Tony Abbott.
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The troika dominated the party for more than five years despite constant internal criticisms that this was a conflict of interest at the party's highest levels.
Mr Loughnane did not return Fairfax Media's calls on Wednesday but sources said he was expected to vacate the position by the end of the year, ahead of the next federal election which is likely to be held in late 2016.
Mr Nutt, the NSW Liberal Party director, is expected to be announced as Mr Loughnane's replacement. Mr Nutt is currently on leave from his position and is working for Prime Minister Malcolm Turnbull to oversee the transition of the new prime minister's office following Mr Abbott's ousting in September.
Ms Credlin, Mr Abbott's controversial chief of staff, also lost her job after the leadership change. Mr Abbott's critics viewed her displacement as one of the major benefits of removing him from the position, because of her infamous dictatorial style.
Mr Nutt is a highly respected political operator who worked alongside Arthur Sinodinos for former prime minister John Howard. He is well known in Liberal circles as Mr Howard's "head-kicker".
Senator Sinodinos was one of the architects of the plot to install Mr Turnbull as prime minister and was promoted to Cabinet Secretary after the leadership change.
Mr Loughnane has been the director of the Liberal Party since 2003 and has overseen two election losses (2007, 2010) and two election victories (2004, 2013).
In February, the Liberal Party's former treasurer Phil Higginson wrote, in two explosive emails that were leaked to the media, that Mr Loughnane and Ms Credlin's positions were untenable.
He wrote, "How this party ever let a husband and wife team into those roles" was beyond him and it was a situation that would not be tolerated in corporate Australia.
"A managing director would never allow his executive assistant to be the wife of the chairman," Mr Higginson, who heads corporate governance body ProNeb, wrote.
