The Labour Party has turned down an offer from Chris Carter to withdraw his nomination for Te Atatu, in return for allowing him to remain a party member.
Radio New Zealand understands the offer was made by Mr Carter's representatives before Saturday's meeting of the party's ruling council.
Radio New Zealand's political staff say Mr Carter offered to step aside to avoid suspension or expulsion, but the party decided to proceed with disciplinary action over comments he made about leader Phil Goff.
The party has re-opened nominations in Te Atatu, and Mr Goff was on Monday writing to the Speaker of Parliament, formally severing ties between the Labour caucus and Mr Carter.
Mr Carter is unwell and on leave from Parliament.
He was suspended from Labour's caucus for circulating an anonymous letter saying there was discontent with Mr Goff and predicting a leadership challenge.
The question of Mr Carter's membership of the wider Labour Party remains unresolved. Disciplinary action is pending over his attack on the leadership.
