The Nationals have reportedly offered to spend another two weeks off the frontbench in a bid to reunify with the Liberals, as a key deadline for making up passed without resolution.
The Coalition split more than two weeks ago over Labor's hate speech laws, with Opposition leader Sussan Ley reportedly setting a deadline of 9am on Friday for the National Party to respond to her request to sideline its rebels, before the breakup was made permanent.
Ley has not confirmed the 9am deadline, which was reported by Nine newspapers.
The Coalition rupture was triggered last month when three National MPs crossed the floor to oppose Labor's hate speech laws, breaching cabinet solidarity.
Ley accepted their resignations, which led the entire Nationals contingent of the shadow cabinet to quit, and the breakup of the Coalition.
She announced temporary appointments to fill the shadow ministry portfolios held by Nationals MPs.
On Tuesday, Ley laid out non-negotiable conditions for a Coalition reunification, including a six-month backbench suspension for the three Nationals MPs involved.
The ABC reports the Nationals have sent a counteroffer of another two weeks in exile from the frontbench, without addressing Ley's conditions.
The Liberal leader has yet to respond to the counteroffer or confirm if negotiations will continue before she announces an all-Liberal shadow cabinet, effectively ending the Coalition.
Earlier on Friday, Liberal Senator Jane Hume was asked if the Liberals were still open to reunification.
"Let's face it, we're better in Coalition with the National Party, but the Liberal Party can do this on its own — do not be under any illusions that we can't," she told Channel 7.
Hume was also asked about One Nation leader Pauline Hanson, who this week signalled she was open to forming a coalition with the Liberals and Nationals.
"People are rightly aggrieved and that's why they're talking about One Nation but come the election I want to make sure that it's the Liberal Party that are presenting those credible and genuine alternatives," she said.
On Friday, Opposition communications spokesperson Melissa McIntosh would not be drawn on whether she agreed with Ley's offer to the Nationals.
"Well, that's up to the negotiations between Sussan and David. But I think Sussan as leader made her position clear … so that's an important position for her," she said.
McIntosh said cabinet solidarity remained a "red line" for any future Coalition arrangement.
"If we don't have cabinet solidarity, then it could become a free-for-all, and it's a very important part of your commitment to the shadow cabinet and to the party and to the coalition," she said.
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