The move would trigger a Christmas holiday election campaign.
The presumed last days of the Liberal government have been marked by threats of lawsuits and ugly rhetoric.
Already, the Liberals have threatened to sue Conservative members of Parliament for "false smears" that linked the party to organized crime.
Conservative leader Stephen Harper called the Liberals "a party named in a judicial inquiry".
He added that the Liberals had been, "found guilty of breaking every conceivable law in the province of Quebec with the help of organized crime."
No confidence
Mr Harper’s no-confidence motion, tabled after Martin refused to call an election in January, accused the government of "arrogance" and blasted its "culture of entitlement, corruption, scandal and gross abuse of public funds for political purposes."
But Liberal House Leader Tony Valeri shot back, calling the conservatives "narrow angry people" who offered "half truths and innuendo."
He added the Conservatives would reverse decades of progress in Canada "in the name of some right-wing ideology."
And Mr Valeri blasted the Conservatives for collaborating with the separatist Bloc Quebecois to bring the government down.
Both sides predicted worse to come.
Spending spree
Meanwhile, the Liberals have gone on a last minute spending spree to prop up their support.
Ministers appeared in every corner of the country, making over 40 announcements in the past week.
Their announcements have spent some 20 billion Canadian dollars (A$23 billion) in taxpayers' money on farmers, transit security, fisheries, culture and arts, forestry, aboriginals.
But Irish rock star Bono criticized Prime Minister Martin for not doing enough to help poor countries.
Bono said he was "personally disappointed" and "crushed" that Martin did not live up to his foreign aid commitments.
"I felt as a former finance minister that he would be able to make the numbers work," said Bono, in Ottawa for a concert.
Funding scandal
And many voters are still upset about a government funding scandal involving millions of dollars being paid to Liberal-friendly advertising firms and kickbacks which were funnelled to the Liberal Party during the administration of Prime Minister Martin's predecessor, Jean Chretien.
The Conservatives have even recruited the scandal’s whistleblower Allan Cutler to emphasise the point.
Prime Minister Martin was exonerated by a judicial inquiry.
But the scandal cost the Liberals a fourth consecutive majority government last year.
Most analysts now predict another Liberal minority government after the election.