Victorian Liberal Leader seeks to oust rogue MP permanently after legal threats

The leader of the Victorian Liberals will seek to expel suspended MP Moira Deeming and "unify" his party after she threatened to sue him.

John Pesutto told 9News discussions are underway to expel Deeming permanently at next week's party room meeting after Peter Dutton said the state arm needs to "get their act together".

Deeming was suspended without pay last week for attending an anti-transgender rally taken over by neo-Nazis and yesterday announced she would launch legal action if Pesutto didn't release a statement refuting her affiliation with Nazis.

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Deeming alleges Pesutto reneged on an agreement to publicly clear her of any association or connection to neo-Nazis.

Pesutto denies ever making the suggestion that Deeming is linked to Nazis.

Deeming wants her nine-month suspension overturned and has threatened defamation against Pesutto.

She handed a 2pm deadline to Pesutto yesterday to make a statement refuting the Nazi affiliation claims she alleges were made against her.

Pesutto refused to respond by the deadline.

"Obviously the issuing of an ultimatum to the party room did not go down well," Pesutto told 9News.

"There are lots of discussions going on internally.

"We're not going to tolerate this kind of attention we have on ourselves."

Senior Liberal Matthew Bach will support a motion, if it comes, to expel Deeming permanently.

"I think it's an amazing move, an extraordinary move to threaten to sue the leader of the party," Bach said.

"I'm not surprised."

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Peter Dutton earlier chimed into the internal warfare announcing the national Liberal branch may have to intervene.

"The Liberal Party need to get their act together down there and keep the pressure on the government," Dutton said.

"As for where we go from here John Pesutto has said that he and his colleagues will look at making her nine-month suspension into a permanent one at the party room meeting.

"That is on the table."

Pesutto said that instead of federal intervention, there needs to be reform within the party.

"I'm going through some challenging times to start that reform," he said.

He hopes the reform happens in a matter of months.

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