On Friday, Ulf Kristersson, the current Moderate Party economic-policy spokesperson, announced his candidacy to become the new party leader. The other favourite, MP Elisabeth Svantesson, said she now backs Kristersson's leadership bid.
Svensson said that it is not clear with the centre-right Moderate Party should move more to the right or more to the centre.
"They have lost voters doing both and I think they might continue losing voters doing both," he told Radio Sweden.
"As a party whose main idea has been to bring together both liberal and conservatives,...but now we see a differnce between these two ways of thinking," Svensson continued.
Sweden's former defense minister Mikael Odenberg is the only other candidate in the party leader race.
The new Moderate leader will be elected on October 1st.
Names floated for next Moderate Party leader2:05 min 2:05 min
Analyst: Moderate crisis part of bigger problem on centre-right5:57 min 5:57 min
Moderate Party begins search for new leader4:18 min 4:18 min