Clive Palmer will sue his former Palmer United Party senator Glenn Lazarus for defamation after he claimed the party had considered a merger with the Liberal Party.
Senator Lazarus, who quit the party in March told Fairfax Media, that Mr Palmer had considered folding his party in exchange for ministerial positions within the coalition government for his two remaining senators Zhenya (Dio) Wang and Lazarus.
PUP national director Peter Burke denied the allegations saying they were designed to damage the party.
"I would expect more from a great Australian sportsman," he said in a statement on Sunday.
He confirmed defamation proceedings would be launched against Senator Lazarus.
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"The reason Senator Lazarus makes these accusations is because his wife Tess was sacked by the party," Mr Burke said, adding that she had been dismissed for spending her time writing speeches and questions for her husband instead of working on agreed party duties.
The party is also suing Senator Lazarus and fellow defector Jacqui Lambie for the millions of dollars it spent on getting them elected to parliament.
