Both the Labor and Liberal parties are understood to be wooing Bob Katter to secure a preference deal with his party, which could be crucial to the outcome of several key Queensland seats.
Prime Minister Kevin Rudd has already spoken directly to Mr Katter, but also met with Liberal Party federal director Brian Loughnane in Melbourne on Monday night, the Courier-Mail reported.
Labor figures are confident of winning over Mr Katter, who considers Mr Rudd a mate.
Katter's Australia Party (KAP) president Rob Katter told the paper both the Senate and lower house preferences would be discussed and no decision had been made.
"We're not ruling anyone out," Rob Katter said.
KAP preference could swing several seats in northern and central Queensland where the party did well in last year's state election.
"If he does a deal with Labor, it could cost us several seats in Queensland," an LNP source told the Courier-Mail.
The seats where the KAP could be key include Herbert, Flynn Capricornia and Dawson, based on Mackay, where Mr Rudd campaigned on Monday.
