The solicitor-general says Peter Dutton is likely clear to stay in parliament, paving the way for a Liberal leadership spill at noon on Friday.
Solicitor-General Stephen Donaghue QC provided the advice about whether Mr Dutton was eligible to sit in parliament over his financial interests in Commonwealth-funded childcare centres.
Mr Donaghue found there is "some risk" the High Court would find Mr Dutton has a conflict of interest over federal payments to the childcare centres.
"However, while that risk cannot be entirely discounted, it would remain necessary for the Court to identify an agreement in which Mr Dutton held that interest," Mr Donaghue said in legal advice released on Friday.
"I am unable to identify such an agreement.
"I consider it unlikely that Mr Dutton is disqualified by reason of payments made to RHT Investments under the Inclusion Support Programme."
Section 44 of the Constitution bans from parliament persons who have "any direct or indirect pecuniary interest with the public service of the Commonwealth".
Mr Donaghue said it was not possible to reach a definitive conclusion without more detailed information.
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