Federal Opposition Leader Brendan Nelson has fended off suggestions he's under threat from former treasurer Peter Costello, who he says is a "loyal" supporter.
Amid renewed speculation over Dr Nelson's future, Liberal sources have been quoted as saying a plan to have Mr Costello take over the leadership is gaining traction within the party.
Concerned Liberals across both factions of the party have reportedly discussed Dr Nelson's standing in the polls, as well as options for alternative leaders.
Faced with a barrage of questions on the issue today, Dr Nelson refused to say whether he would consider standing aside for Mr Costello, while maintaining he is committed to leading the party to the next election.
"Well look, I am very committed to the job that I'm doing in leading the opposition and the alternative government of Australia. I'm not going to discuss hypotheticals," Dr Nelson told reporters.
"In my view, we've made considerable progress. Australians are waking up to Mr Rudd, that he is not the person who was featured in the brochure that Australians received in the mailbox last year.
"... I am very determined that I will lead the Liberal Party and the opposition to the next election."
Dr Nelson also suggested he was confident he had the support of Mr Costello, who has relegated himself to the backbench since the coalition lost office last November.
"He was an outstanding treasurer, he's worked very hard for the people of Higgins, and he has also been a very loyal and consistent supporter of me since I took on the leadership," Dr Nelson said.
Mr Costello has been under pressure to announce his intentions since rejecting the opposition leadership after the November election.
The retirement of former Howard government ministers Alexander Downer and Mark Vaile has placed him under further pressure to announce whether he intends to stay in parliament or quit politics.
Dr Nelson said the decision on staying in federal politics or not was one for Mr Costello to make.
But he also talked up the ex-treasurer's credentials, saying he would be happy if Mr Costello stayed.
"If Peter decides he is going to continue his political career, and serve the people of Higgins, and indeed the Liberal cause, I can assure you he will be on the frontbench with a bullet," Dr Nelson said.
"Peter Costello as you know has been a great servant of the people of Higgins and of Australia, and did a magnificent job as Australia's treasurer.
"I would be very happy for Peter to stay. He is by far and away the best performer that I've ever seen on the floor of the parliament in Canberra."
Mr Costello's office today refused to comment on the leadership speculation.
