Mr Wilkie yesterday said he was prepared for a fight.

``I know now that the gloves are probably going to come off and the Labor Party, the Liberal Party and the Greens all think they can win the seat off me,'' he told ABC radio.

``Well I say to all three parties, bring it on.''

Before Mr Wilkie narrowly won the seat in 2010, it was considered safe Labor and the party is determined to regain the seat.

Labor Party state secretary John Dowling said described Mr Wilkie's decision as a ``petulant fit'' which would damage his chances of re-election.

``He had a fantastic opportunity to actually have a direct say and bring about things for Denison,'' Mr Dowling said.

He said plans to announce Labor candidates in federal seats at this year's state conference in August had not changed.

The party is seriously considering trialling a US primary-style preselection process in the urban electorate which would allow the community to have a say.

Mr Dowling expected that process would start in March.

Liberal Party state president Sam McQuestin said Prime Minister Julia Gillard's broken agreement with Mr Wilkie would hurt Labor more than Mr Wilkie.

``He is just another notch on a long list of people that have been double crossed by this Labor government,'' Mr McQuestin said.

The party plans to preselect its candidate in Braddon next, before moving on to Franklin and Denison by the end of the year.

Greens Denison convenor Austra Maddox said they were only in the very early stages of preselection.

``I think it will be a pretty open contest,'' Ms Maddox said.