As dropdown element with text as New Test is not with in a Select node you can't use Select class. To select <option> with text as New Test you need to induce WebDriverWait for the element_to_be_clickable() and you can use the following xpath based Locator Strategies:

• Using CSS_SELECTOR:

  WebDriverWait(driver, 20).until(EC.element_to_be_clickable((By.CSS_SELECTOR, "li#testing > ul.dd li > a[href*='/abc/xyz/text.html'] > span"))).click()
  

• Using XPATH:

  WebDriverWait(driver, 20).until(EC.element_to_be_clickable((By.XPATH, "//li[@id='testing']/ul[@class='dd']//li/a/span[text()='New Test']"))).click()
  

• Note : You have to add the following imports:

  from selenium.webdriver.support.ui import WebDriverWait
  from selenium.webdriver.common.by import By
  from selenium.webdriver.support import expected_conditions as EC
  

Reference

You can find a couple of relevant discussions in:

• How to test non-standard drop down lists through a crawler using Selenium and Python
• select kendo dropdown using selenium python

The Select method works only for dropdowns which has HTML tag select. In your case you can not use a select method, just write locator( XPath, CSS, or else) for the element which you want to detect from the dropdown.

In your case the XPath of the element which you wanted should be:

//li[text()='New Test']