Thai politics have been thrown into chaos as the ruling Pheu Thai party sought royal approval to dissolve the parliament and hold a new election.

This move comes after the party suffered the loss of its prime minister, Paetongtarn Shinawatra, due to a court ruling for an ethics violation last Friday.

Paetongtarn's dismissal has triggered a scramble for power with her Pheu Thai party attempting to strengthen a fragile coalition.

Meanwhile, the Bhumjaithai Party is mounting a challenge to form its own government.

The Bhumjaithai Party, led by former opposition members, has announced it would back another party to prevent the return of the previous coalition government.

The removal of Paetongtarn marks the latest development in a long-standing political battle between Thailand's rival elites.

She is the sixth premier from or supported by the Shinawatra family to be ousted by the military or judiciary, and this is the second time within a year.

Natthaphong Ruengpanyawut, leader of the People's Party, stated that his party would support Bhumjaithai in order to prevent the return of the previous coalition government.

He also mentioned that there could be a parliamentary vote on a new prime minister as early as Friday.

There is concern about the potential return of Prayuth Chan-o-cha, the retired general who took power in 2014, as a possible candidate for Prime Minister.

This comes amid discussions of dissolving parliament and holding a new election to address political instability.