Kevin Rudd has delivered a stinging rebuke to Peter Costello, saying he was being gracious in offering the former treasurer a diplomatic posting.
Mr Costello has claimed the former prime minister offered him a "very senior" overseas ambassadorial posting because of fears he could become opposition leader and threaten Labor's hold on government.
"Rudd did everything he could to get me out of parliament," Australia's longest-serving treasurer said.
However, Mr Rudd said he made the offer because Mr Costello had been intending to leave parliament anyway.
"After he told me of his plans, I offered him an ambassadorial position which I considered would be a good use of his talents," the former Labor leader said in a statement to AAP on Monday.
Mr Rudd did not regret having made the offer but he criticised Mr Costello for not recognising his grace.
"It would be useful if Mr Costello simply acknowledged a gracious act for what it was. But that would require grace, wouldn't it?"
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