Malcolm Turnbull says it is "politically and morally right" to give Liberal Party members a greater say in how the party is run.
As NSW state delegates prepare to vote on significant party reform at the Liberal AGM on Saturday, the Prime Minister told Sydney's Town Hall it must empower its grassroots.
"The best way to attract people is to give them a say in how the party is run," Mr Turnbull said to applause.
While the Warringah Motion - a plan by former Prime Minister Tony Abbott to give all party members preselection votes in their respective seats - is likely to get voted down at the AGM, a more moderate compromise may be agreed on.
That so-called Bennelong Motion, which Mr Abbott has described as a "watered down" version of his plan, would still leave about 10 per cent of the preselection vote to the state council and executive.
Mr Turnbull and NSW Premier Gladys Berejiklian are understood to support the Bennelong alternative.
During his speech to the AGM, Mr Turnbull also said the party must preselect more women into safe and winnable seats.
"We must increase the number of people women in our parliamentary teams," Mr Shorten said.
"We are not a party of quotas, but we should not kid ourselves about this issue or push it to one side."