Sources said Walia was initially reluctant to contest from New Delhi but agreed later following the party's direction.
Kejriwal had defeated Dikshit by a huge margin of over 25,000 votes in the New Delhi seat. BJP is yet to announce its candidate for the seat.
Walia was Minister for Health and Education in Dikshit's Cabinet.
She was defeated by AAP's Somnath Bharti in Malviya Nagar constituency in the 2013 Assembly polls. She had won the seat in 1999, 2003 and 2008.

Meanwhile, speculation continued in AICC about the second list of Congress candidates amid protests by some groups from certain constituencies, including R K Puram. Supporters of one leader from the area shouted slogans outside the AICC office.
A senior party functionary, speaking on the condition of anonymity, said that the names of candidates can be announced in two lists now after resolving "some issues" in a few constituencies. Congress released its first list of 24 candidates on January 1 for the 70-member Delhi Assembly for which the election is scheduled on February 7.

AICC in-charge for Delhi P C Chacko had yesterday said that Congress has finalised candidates for 45 more seats.
At the AICC briefing, party spokesperson Abhishek Singhvi expressed confidence that Congress will do much better than expected in Delhi polls and hailed the appointment of party General Secretary Ajay Maken as Campaign Committee Chief.

"It's an excellent choice, which will lead to excellent results. Every aspect was taken into account before the decision was taken," he said.

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