Adrian Watson has the backing of Ulster Unionists in South Antrim
It is understood the South Antrim Ulster Unionist Adrian Watson may yet be reinstated as the party's choice of candidate for the Westminster election.
Sources suggest the party leadership has been in touch seeking clarification on a range of issues.
Mr Watson had been told on Monday by a senior Ulster Unionist he was no longer deemed suitable, after the Conservatives raised objections.
But he has substantial backing from the UUP South Antrim association.
It is understood resignations have been threatened if he is rejected.
A decision is expected on the matter within the next 48 hours.
The Ulster Unionist Party has formed an electoral pact with the Conservatives for the Westminster elections.
In 2006, a support group for gay men, the Rainbow Project, accused the Ulster Unionist guest house owner of discriminating against same sex couples.
Mr Watson, an Antrim councillor, said he would feel "uncomfortable" about having gay couples in his bed and breakfast.
He said the business was based in his family home, and his wife, a Christian, could be upset.