The Liberal Democrats have chosen a candidate to fight the Ealing Southall by-election on 19 July.
Mr Bakhai also contested the seat in the 2005 general election
Nigel Bakhai also contested the Labour-held London seat for the party in the 2005 general election.
The by-election was triggered by the death of Britain's oldest MP, Piara Khabra, who was 82.
The Conservatives have chosen businessman Tony Lit to contest the seat, with Labour's selection panel meeting on Monday night.
Mr Bakhai: "Living in the heart of the constituency, I know the issues that local people face. Labour has taken our area for granted for too long.
"This election is about local people electing the best MP to represent our area.
"People here want to know why our streets aren't safe, why the local NHS is in deficit and why the government squandered millions on an illegal war in Iraq."
A by-election will be held in Sedgefield, County Durham, on the same day as in Ealing Southall.
The Conservative Party has chosen Graham Robb as its candidate, with Labour and the Lib Dems yet to decide on theirs.
The UK Independence Party said Toby Horton, a former Conservative candidate who stood against Mr Blair in 1983, will fight for the seat again.
Mr Horton was chairman of William Hague's constituency party for three years, but joined UKIP last year.
The Sedgefield contest was triggered by the retirement of Tony Blair as an MP to become a Middle East envoy.