Treasurer swap could be circuit-breaker

Malcolm Turnbull is reportedly prepared to serve as treasurer if he is asked in order to avert a divisive leadership spill.

News Corp Australia reported on Sunday that the option to dump Joe Hockey as treasurer in favour of Mr Turnbull was canvassed within Liberal circles over the past two weeks and resurfaced in recent days ahead of Tuesday's possible leadership spill.

The report says several cabinet ministers, including Julie Bishop, had urged Prime Minister Tony Abbott to replace Mr Hockey, who has come under fire from colleagues for failing to sell the Budget and the government's economic message.

News Corp reported that a source close to Mr Turnbull said that as of last week he was prepared to cut a deal for the Treasury portfolio and as of late Friday night, it was still a live option.

"That is still an option available to the PM," the source said.

"It could be the circuit-breaker."