Liberal leader Sussan Ley has staved off a leadership challenge by offering a way to reunite the Coalition, with the Nationals considering the proposal.
Speculation about right-wing rival Angus Taylor challenging Ley reached fever pitch when the Coalition split over Labor's hate speech laws two weeks ago.
After holding late-night talks with Nationals leader David Littleproud on Monday, Ley sent a letter with three non-negotiables to reunite the Coalition.
It included an ultimatum to suspend the three senators — Ross Cadell, Bridget McKenzie and Susan McDonald — who crossed the floor from the shadow cabinet for six months.
Littleproud said the Nationals are considering "endeavours to reset the Coalition", with constructive negotiations continuing behind closed doors.
"It’s important we take the time to get the settings right," he said in a statement.
However, a Nationals source, requesting anonymity to speak freely, said the suggestion of agreeing to a suspension is untenable.
SBS News understands shadow cabinet solidarity, the issue that created the split, as well as the inability of the Liberal or National party rooms to reverse decisions made by the shadow cabinet, are also sticking points.
Ley hopes to have the matter resolved in the coming week before parliament resumes for the second sitting week.
Some in the Nationals party room also back a reunification. MP Darren Chester was set to use the party room meeting on Monday to move a motion to reinstate the Coalition.
"Every moment we spend talking about ourselves, is a free pass to a weak and divisive prime minister who has failed to keep his promises to lower energy bills and govern for all Australians," he said on social media.
Ley's offer came as her supporters — including legal affairs spokesperson Andrew Wallace — flanked her on either side on Tuesday morning ahead of the Liberal party room meeting.
Wallace, who was promoted following Andrew Hastie's resignation from the frontbench last October, believes "Sussan has the numbers".
"Sussan Ley has the support of the party room, I do not believe there is an active move against her," he told Sky News on Tuesday.
Last May, Ley beat Taylor by only three votes — 29 to 25 — when the party room voted on who would replace Peter Dutton as Liberal Party leader following the Coalition's heavy federal election defeat.
However, the retirement of two senators and the removal of Gisele Kapterian from the party room after she lost a recount in Bradfield means, in reality, the numbers are even tighter.
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