It's been revealed that key Labor MPs are prepared to move against Kevin Rudd's leadership to make way for Julia Gillard as early as next week.
A challenge depends on Labor's polling not dramatically improving and the dispute with miners over the super-profits tax not being resolved soon, The Weekend Australian says.
The paper says Labor MPs it surveyed believe the government's support has "tanked" in western Sydney, Western Australia and Queensland and that Labor should change leaders to restore confidence or risk losing the election.
At least 10 MPs in marginal seats contradicted the Prime Minister's suggestion that the negotiations with miners over the tax could last for weeks or months.
Federal Labor is bracing for further pain this weekend, with an expected loss in the by-election for the Labor-held state seat of Penrith in western Sydney and a swing against the state government of 10-20 per cent.
News that makes sense
Your trusted source for staying up-to-date with the world around you. Get free daily news updates and analysis, straight to your inbox.
Penrith sits in the federal seat of Lindsay and some MPs fear its loss could foreshadow a swath of potential losses in federal Labor-held seats in western and southwestern Sydney.
Deputy Prime Minister Julia Gillard said on Friday she has not been approached to run for the leadership and that Mr Rudd has made it clear he intends to lead Labor to the election and serve a full term.
