During the state Assembly elections held in November last year, Chief Minister Shivraj Singh Chouhan had contested from Budhni and Vidisha seats and won from both the places.
Later, Chouhan had resigned from Vidisha which necessitated a bye-election in the constituency.
Earlier, there was speculation that Chouhan's wife Sadhana Singh Chouhan may be fielded from Vidisha.
Dangi is a close relative of Mohar Singh Dangi, who had been elected from Vidisha twice in the past.
The bye-election is scheduled to be held on April 24.