In the framework of QCD factorization, based on the first order of isospin violation, we study direct CP violation in the decay of $\bar{B}_{s}^{0} \to K^{0}\rho^{0}(\omega)\to K^{0}\pi^{+}\pi^{-}$ including the effect of $\rho-\omega$ mixing. We find that the CP violating asymmetry is large via $\rho-\omega$ mixing mechanism when the invariant mass of the $\pi^{+}\pi^{-}$ pair is in the vicinity of the $\omega$ resonance. For the decay of $\bar{B}_{s}^{0} \to K^{0}\rho^{0}(\omega)\to K^{0}\pi^{+}\pi^{-}$, the maximum CP violating asymmetries can reach about 46%. We also discuss the possibility to observe the predicted CP violating asymmetries at the LHC.
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