Peter Costello has given his total support to Liberal Party leader Brendan Nelson, vowing to back him into the next election.
As he entered a gala Melbourne dinner in his honour tonight, Mr Costello hosed down intense speculation that his supporters would convince him to challenge for the leadership.
"I absolutely and totally support Brendan Nelson," the former treasurer told reporters.
"He has been elected as the leader of the Liberal Party to take the Liberal Party to the next election and to win the next election, and he will have my total and utter support in doing that.
"As far as I'm concerned the Liberal Party leadership is a team of Dr Nelson and Julie Bishop and I'm supporting them."
Dr Nelson was due to speak at the sold-out thank-you dinner in honour of Mr Costello's years of service to the party and the nation.
Earlier today, Dr Nelson fanned speculation about Mr Costello's future when he indicated he would be very happy for the member for Higgins to return to the frontbench.
Mr Costello would not be drawn tonight on whether he would sit on Dr Nelson's front bench.
"I intend to keep on serving the people of Higgins," he said.
He described tonight's dinner at the Melbourne Museum as "neither a farewell or a resurrection, it's a thankyou".
Dr Nelson earlier indicated he would be happy for Mr Costello to stay in politics but clumsy language left some believing he would welcome a challenge for the leadership.
"Peter's made his decision that he did not seek the leadership of the party," he told reporters.
"As I've said before, I'd be very happy if he changes his mind - that's his business."
A spokesman for Dr Nelson later clarified the opposition leader had been referring to Mr Costello's future in parliament, rather than his leadership intentions.
Former prime minister John Howard's most loyal lieutenant and one-time leadership contender Tony Abbott sent a clear message that Mr Costello was wanted and needed by the party.
"Costello is undeniably the Liberal Party's best political asset now that Howard has gone, which is why so much turns on whether he recovers the will to serve, which so clearly (and understandably) wavered in the aftermath of the election," Mr Abbott wrote in Quadrant magazine.
A bashful Mr Costello was appreciative of Mr Abbott's comments.
"Nobody ever objects when people say nice things about them," he said.
"It's very nice of Tony to say nice things about me and I appreciate it very much. He's an old friend of mine and I thank him."
