Tasmanian senator Jacqui Lambie has been demoted from her position as the Palmer United Party's deputy Senate leader for failing to show up to party meetings.
It's believed Ms Lambie was demoted by party leader Clive Palmer. Mr Palmer confirmed her demotion on Twitter.
It follows weeks of turmoil within the party, with Ms Lambie has been engaged in a war of words with Mr Palmer.
There is speculation Ms Lambie could quit the party, after she dropped the party name and logo from her website and complained Mr Palmer is not doing enough on issues such as a better pay deal for Defence personnel.
Mr Palmer says he made his decision after she failed to attend the last three parliamentary party meetings.
"This will be enforced until such time she gives an undertaking to cease personal attacks on party members and to follow major decisions of the party room," he said in a statement.
"At no time has Jacqui Lambie ever brought a resolution to the party meeting in relation to Tasmania or veterans."
Senator Lambie refused to comment on the developments during a press conference in Parliament House.
Palmer United's Glenn Lazarus hopes Jacqui Lambie won't leave the party and has called on her to talk with her "bewildered" colleagues.
PUP Senate Leader Glenn Lazarus earlier said he hoped Senator Lambie would stay in the party.
"I love Jacqui, I think we get on really well, and the party has achieved quite a number of things throughout the year," Senator Lazarus told reporters.
"I'm just a bit bewildered about the fact that she won't talk to us."
On Monday, Senator Lambie began a campaign in parliament to vote against all government legislation until the Defence pay deal is reconsidered.
Her chief of staff Rob Messenger was expelled from the party last week on the grounds of "making false and misleading statements" about PUP senators.
Senator Lazarus defended his party leader's handling of the crisis, despite Mr Palmer calling Senator Lambie a "drama queen".
"I think Clive's done more than enough to try and rectify any issues Jacqui Lambie has," he said.
However, there was no deadline on her making a decision about her future, he said.
"I'm hoping that within the next two weeks of (Senate) sittings she can bring it upon herself to come and talk to us about whatever issues she's got," Senator Lazarus said.
Independent David Leyonhjelm, who has held talks with Senator Lambie about forming a new voting block in the upper house, said she was still considering her future with the PUP.
"Up to date I've regarded it as sort of a family fight where they fight like crazy and then make up," he said.
"It may be nothing more than that. But sometimes families break apart and never speak again."
