"That was another part of the difficulty in this decision because I didn't expect this to happen," he said. "I had covered that base off effectively with Craig Foss before the election, and I was comfortable that I could do this."
Although he knew some people would not support his decision, Mr Yule said he felt he could make a bigger contribution as MP, but did not want to "walk away" from the issues facing the district.
"I now have an opportunity which I didn't expect to have," he said.
"My view is if I don't have a go now, I never will have a go. Here is a seat that I'm familiar with, I've got lots of experience working with Parliament and Central Government politics, and I think I can strongly support this electorate, the Hastings district, and the people of Hawke's Bay."
If selected as the candidate, Mr Yule said he would remain working full time as mayor until June 30.
He had a "personal commitment" to resolve Hastings' water issues, noting August's Havelock North water crisis, which caused over 6000 people to become ill.
"There are a whole lot of things that will be done between now and the 30th of June and I'm really confident that the water thing can be completely sorted by then."
After this date, Mr Yule said he would involve his councillors in whatever processes followed.
However he is not the only one vying for the role -Tukituki National Party chairman Kevin Trerise said he believed the party headquarters had received a number of nominations.
"There's been good interest from a number of people," he said. "It's great that people are interested in offering themselves for public office and as a MP."
Speculation surrounded other names after Mr Foss' announcement, including Hastings District councillor and unsuccessful mayoral candidate Adrienne Pierce, and Stewart Group executive director and chief executive Nick Stewart.
Yesterday Ms Pierce had not decided whether to stand, and Mr Stewart said he had not put his name forward.
A pre-selection process for the Tukituki seat will begin next week, before party members vote on selected candidates. Mr Trerise said they hoped to have a decision before the end of February.
Whoever is selected as the National party candidate will contest the seat against Labour's Anna Lorck.
Confirmed as Labour's candidate in June, Ms Lorck was given the job of returning Tukituki to Labour - which it had held for nine years from 1996, and as the Hastings seat since 1993, by former MP Rick Barker.
Yesterday she said Mr Yule's announcement proved "not once, but twice, that he is not a man of his word - he is nothing but a law unto himself".
"In a year when Hastings needs its mayor the most, Lawrence Yule has turned his back on us. He is running away from the real issues facing Hastings to pursue his own personal political agenda," she said.
"More than ever the people of Hastings, our city, and district deserve loyalty and leadership we can trust, respect and count on."
Ms Lorck, who lost by a 6490-vote majority to Mr Foss in 2014, said she would remain focused on giving her all to the people Hastings and Tukituki, "putting all my energy and passion into working hard to be their new local MP".
Political commentator Simon Lusk has weighed in saying if selected for National Mr Yule would be a "formidable candidate".
The Havelock North resident said National's current high poll ratings in comparison to Labour were unlikely to change significantly.
He said Mr Foss' 2014 majority was significant as it was close to the historical threshold for overturning a majority in a single election of 6500 votes.
"Foss won 50 of 64 booths, and there are few truly left leaning areas in Tukituki that he did well in."
In a generic race between a Labour and a National candidate in Tukituki, National's candidate would win on current polling, on historic precedent and previous election results, Mr Lusk said.
In an election between Mr Yule and Ms Lorck, there was nothing to suggest "Lorck is so popular or Yule so unpopular that this result would be changed".
He added the mayor's handling of the Havelock North gastro outbreak was "text book political damage control", and did not think the issue would be enough to lose Mr Yule the seat.