Canberra Liberals Leader Elizabeth Lee will again face Jeremy Hanson in a ballot for the leadership at the party room spill on Thursday.

Lee announced her intention to recontest the leadership role on Tuesday morning following Hanson’s decision last week to stand for the position after the Liberals’ seventh consecutive election loss.

Hanson, who led the party to the 2016 election loss, characterised the October 19 failure as “very disappointing”.

Lee’s Liberals failed to increase their seats from nine. Labor maintained its 10 seats, The Greens lost two to hold four seats and there are two new independents.

Ms Lee believed she was the best person to lead the Liberals to the next election, heartened she said by discussions with colleagues, party elders and the community.

She has offered an olive branch to Hanson if she were successful by inviting him to play “a very, very important role in my shadow cabinet”.

Hanson was sensationally dumped as deputy leader in an unexpected party room move by Lee in December where he was replaced by Leanne Castley. Stripped of his shadow portfolios, he has spent this year on the backbench.

In a swipe at Hanson at the time, Lee said: “Going into an election year, it is more important than ever to have a leadership team that is in lockstep, and I know Leanne will support me 100 per cent and the direction we are taking to win government in 2024.”