Barisan Nasional is expected to field MIC information chief P Kamalanathan for the April 25 Hulu Selangor by-election, according to sources.
It is learnt that MIC president S Samy Vellu held a last-minute discussion with Deputy Prime Minister Muhyiddin Yassin to convince the latter to field MIC number two G Palanivel.
Sources claimed that the two parties reached a compromise and agreed on Kamalanathan, 42.
Since the onset of the 'candidate controversy', the Rawang-born Kamalanathan, who speaks fluent Malay, has been touted as the president's 'second choice'.
He is also known to be close to Umno leaders, especially those from the Youth wing.
Yesterday, Umno Youth chief Khairy Jamaluddin stressed that BN should field a young candidate for the by-election.
Previously, speculation was rife that Hulu Selangor MIC Youth chief V Mugilan could be named as the candidate.
However, Samy Vellu told reporters after an emergency Central Working Committee (CWC) meeting last night that the party plans to take disciplinary action against Mugilan.
Reports have claimed that Mugilan enjoys the backing of local Umno leaders, who have rejected Palanivel.
Banners have also appeared in Hulu Selangor, stating 'Residents do no want Palanivel'.
Muhyiddin is expected to announce the BN candidate at 4pm.
Senate president's post on offer?
Should Palanivel be dropped, it would be a lethal blow to the 63-year-old politician's career. The move would also be a slap for Samy Vellu, reaffirming the belief that the president of three decades is no longer a commanding force under the new administration.
However, certain observers believe that Samy Vellu would turn this around to his favour in order to kill off Palanivel in the party, since ties between the duo have soured.
Other quarters claim that the trade-off could see Palanivel being made a senator and subsequently the senate president under the rotation agreement between BN parties.
Previously, it was reported that Palanivel's camp had even commenced printing election posters and other paraphernalia.
Local MIC leaders have also warned of a boycott should Palanivel be dropped, and pundits have noted that the crisis has demoralised members on the ground.