The NSW branch of the Liberal party will not pursue legal action over last week's council nominations blunder, which cost close to 140 candidates a spot on the ballot in next month's local government elections.

In short:

The NSW Liberals has backed down on legal threats over last week’s council nominations blunder.

Close to 140 candidates will not be on the ballot for next month’s local government elections.

The party admitted fault last week and sacked state director Richard Shields.