Tensions have been building for months between President Thein Sein and Parliament speaker Shwe Mann, both of whom have expressed an interest in leading the country.
An internal meeting was held at the Union Solidarity and Development Party headquarters yesterday to announce the selection of candidates for the November 8 polls.
The local news site, Irrawaddy, said it was announced that Shwe Mann had been dismissed as the party chairman - infuriating some members.
Witnesses said that trucks started arriving late yesterday and that some party members were prevented from leaving the building.
Minister of Information Ye Htut said on his Facebook page that it was an internal party matter.
"But I heard something is going on with the changing of party leaders or high-ranking offices," he said.
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