Coalition council of elders mooted amid 11th-hour talks

MPs from the former coalition are hoping a team of elders from both parties could help break the deadlock and avoid a permanent divorce.

Mr Howard, fellow former prime minister Tony Abbott and former Nationals leader John Anderson are among the names being floated.

Liberal frontbencher Melissa McIntosh, who worked for Mr Howard when he was prime minister, said he would be welcome to step in.

"There's no better person than Mr Howard in bringing the broad church back together, bringing the congregation... back together," she told reporters in Canberra on Monday morning.

Ms McIntosh said the former prime minister would help the parties shift focus after weeks of ugly political infighting.

Ms Ley was expecting to receive a counter-offer from the regional party on Friday morning.

If a compromise isn't struck by Monday, the opposition leader has indicated she will appoint Liberals to fill the front bench roles.

The break up was triggered by a disagreement between the two allies over hate crimes laws, which saw three Nationals senators offer to quit from the frontbench for voting against their Liberal colleagues.

When the trio's resignations were accepted, the remaining Nationals frontbenchers staged a mass walkout.

Opposition Leader Sussan Ley wants the three senators to be suspended from the frontbench for breaking shadow cabinet solidarity - a move which the Nationals appear unwilling to accept.

But if negotiations with the Nationals go south, she's expected to announce her new shadow ministry before then - potentially on Sunday - a move which would cement the coalition split and deepen animosity between the two former partners.

Some Liberals and Nationals believe their parties can go it alone, but others believe the parties will only be successful if they can restore the coalition partnership.

Liberal senator Jane Hume said her party would always be stronger with the Nationals, but shouldn't compromise on its own values.

"We need to start building our policy agenda based on our own party's values and our own priorities," she told reporters in Canberra.

"The Nationals are better when they're Nationals. Liberals are better when they're Liberals. But we're stronger when we're together," Senator Hume said.

But Nationals Senator Bridget McKenzie argued her colleagues could be successful without their long-term ally.

"The National Party has been a party of government in Canberra for over a century, long before the Liberal party arrived on the scene," she told reporters at Parliament House.

"We've done it before, we can do it again," Senator McKenzie said.

Australian Associated Press