Opposition leader Sussan Ley has walked back on calls for Kevin Rudd to be sacked as Australia's ambassador to the United States.
Rudd was caught in an awkward exchange with the US president on Tuesday over derogatory online comments he made about Trump before he was appointed by Albanese to the diplomatic post.
After the incident, Ley said Rudd's position was "untenable" and he should be dismissed or step down from the role.
On Wednesday, Ley's backbench colleague Jane Hume broke ranks with her leader and acknowledged Rudd's work in securing a critical minerals deal, also telling Sky News calls for him to resign were a "little bit churlish".
Hume and Ley's relationship remains fractured after the former was dumped from the frontbench when Ley took over as leader.

Former prime minister Kevin Rudd apologised to US President Donald Trump at the White House on Tuesday over old social media posts. Source: AAP / Lukas Coch
"We've got an outcome that was in the national interest; it's something that we should acknowledge and celebrate," Hume said.
Asked about Hume's remarks and if she had made a "captain's call", Ley declined to repeat her calls for Rudd to be sacked.
"I welcome all the comments from my talented backbench and I know, like me, that they are focused on all the bread and butter issues that matter to us," she said at a press conference in Sydney on Wednesday.
"Kevin Rudd is the prime minister's choice for ambassador — it's a big job."
Albanese defends Rudd
Prime Minister Anthony Albanese revealed he gifted Trump a model submarine to mark his official Washington visit, while he also expressed support for the continued role of Rudd.
Albanese told reporters on Wednesday that Rudd is an "outstanding representative" of Australia who "works his guts out" in Washington.
Rudd would serve out a four-year term, Albanese confirmed, which does not conclude for more than a year.
This came as Ley earlier said the relationship with the US was "vital", urging Albanese to "back him or sack him".
"This isn't about the individual. This is about the relationship and it's about Australia's national interest," she said.
Official gifts revealed
Albanese also revealed Australia's official gifts for the Trumps.
"We had a gift for Melania, we had jewellery," he said.
"We had a submarine model for the president, and we had some Ugg booties for the president's newest granddaughter to come along."
He said for protocol reasons, he was not able to reveal what Trump had gifted him.
Albanese has stopped short of singling out China as the target of the AUKUS nuclear-powered submarine deal, despite the White House asserting that countering China is the key reason for the policy.
He refused to say whether he would personally raise the Chinese military decision to set off flares near Australian aircraft in the South China Sea with Chinese President Xi Jinping.
Albanese said the matter had already been escalated with China in Beijing and Canberra.