The departure of Chris Huhne, the former Liberal democrat cabinet minister, who stepped down as an MP on Monday after pleading guilty to perverting the course of justice, sets the stage for a strained coalition as Conservatives and Lib Dems compete for his marginal seat.

Mr Huhne’s guilty plea sets up the possibility of a closely fought by-election in Eastleigh, where the two parties are split by just 3,900 votes. The town is seen as a key target seat for the Tories if they are to secure an overall majority in 2015.

The battle is likely to test frayed coalition relationships, but it could also prove a route into parliament for Ukip, whose leader, Nigel Farage, is “considering his options” over whether to mount a challenge as well, his party said.

Mr Huhne had always been considered a political survivor. He has twice run for the Lib Dem leadership and has navigated storms over accusations that he had smeared leader Nick Clegg during the 2007 leadership contest and the acrimonious break-up of his 26-year marriage.

Seen before the scandal as one of the nation’s top politicians, he only narrowly lost the leadership contest to Mr Clegg and had been viewed as a likely successor.

In a brief statement outside Southwark Crown Court on Monday Mr Huhne said: “Having taken responsibility for something that happened 10 years ago, the only proper course of action for me is to resign my Eastleigh seat in parliament, which I will do shortly.”

Mr Clegg was told the night before that Mr Huhne would change his plea to guilty.

“This is obviously an extremely serious matter and it’s essential that the legal process is now allowed to run its course,” Mr Clegg said. “I am shocked and saddened by what has happened, but I believe that Chris Huhne has taken the right decision in resigning as an MP.”

Downing Street has not commented on the resignation, with the prime minister’s spokesman merely responding: “It is a matter for Mr Huhne.”

Mr Huhne had already stepped down from his job as energy secretary so he could fight the charge last February.

Keith House, Liberal Democrat leader of Eastleigh council, said: “It is very, very sad to learn of Chris’s resignation. He has been a hard-working MP for Eastleigh for the last eight years and has built up a reputation for hard work, both locally and nationally.

“The Liberal Democrats have a solid base in Eastleigh. They have won every election here for eight years and we will go forward.”

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