UPDATE: Bega Valley Shire Council has announced Kristy McBain will step aside as the council's mayor, but will remain as a councillor.
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Deputy Mayor Sharon Tapscott will take on the responsibilities of mayor in the short term.
"The current mayoral term runs until September 16 this year; one option is for councillors to elect a mayor at their meeting in May who would see out the remaining five months before the scheduled mayoral election in September," general manager Leanne Barnes said.
"That person would then take us through to the local government elections in 2021."
EARLIER: Bega Valley Shire Mayor Kristy McBain has been endorsed as Labor's preferred candidate for the federal seat of Eden-Monaro.
At a media conference in Canberra on Friday morning, Ms McBain confirmed she was nominating for the pre-selection and had been endorsed by Opposition Leader Anthony Albanese.
Mr Albanese said it was clear the "best candidate for Eden-Monaro is Kristy McBain".
Ms McBain said she had been a member of Young Labor, and has now rejoined the party.
She thanked retiring Member for Eden-Monaro Mike Kelly for his work, saying there would "certainly be big shoes to fill".
She said she did not seek out the candidacy, but wanted to take it on.
"I'm local, I'm from the community and I've worked for the community for a number of years now," Ms McBain said.
She said people in the Eden-Monaro wanted a change in politics.
"I want to be that voice for the people of Eden-Monaro because I don't want my community to be left behind at the moment, and at the moment my community is being left behind," she said.
"They are being forgotten."
Mr Albanese said nominations were open for other candidates and would close on Monday.
Ms McBain advised BVSC that she will step aside as mayor during the election campaign but remain an active councillor in accordance with the Local Government Act.
During this time she will not receive mayoral allowances, and the mayoral car will be handed back to council.
Deputy Mayor Sharon Tapscott will take on the responsibilities of mayor in the short term.
"Kristy has worked hard over the last eight years as a councillor and I wish her well with this next chapter in her community service," BVSC general manager Leanne Barnes said.