Victorian Liberal MPs have taken steps to expel controversial MP Moira Deeming, hours after she denied threatening to sue her own party.
Opposition Leader John Pesutto said on Saturday that five of his MPs had submitted a motion seeking Ms Deeming's expulsion at a party room meeting on Friday, May 12.
Earlier on Saturday, Ms Deeming issued a statement via Twitter denying plans to sue her party, directly contradicting her statement made two days earlier that she would make a legal challenge.
Mr Pesutto had already warned of an expulsion motion and that he would consult colleagues about it.
The ABC understands the five MPs who moved the expulsion motion were Matthew Guy, James Newbury, Cindy McLeish, Roma Britnell and Wayne Farnham.
"Today I received a notice of motion from five Liberal Party MPs seeking the expulsion of Moira Deeming at a party room meeting that will be held next Friday, May 12," Mr Pesutto said.
"I remain firmly committed to leading a disciplined, united and inclusive Liberal Party that will continue to take the fight up to the tired, corrupt and incompetent Andrews government.
"Our focus is on Victorian families and small businesses who face a horror state budget with higher taxes and cuts to key services and infrastructure projects."
Ms Deeming was suspended for nine months over her involvement with an anti-trans rights rally organised by activists who, Mr Pesutto alleged, were associated with neo-Nazis.
She issued an email on Thursday demanding a media statement from Mr Pesutto by 2pm or he would face legal action.
"I have advised my lawyers to prepare a legal challenge over my suspension, because I believe that we need to come together as colleagues and have a do-over meeting," Ms Deeming said in Thursday's letter.
Now the MP has denied her plans to lodge legal action against the party.
'I just wanted to stop going around in circles'
In a statement released this morning, Ms Deeming said she has only "contemplated" legal assistance in the form of mediation to help her negotiate the conditions of her nine month suspension.
"I have never once considered suing the Liberal Party and reports that I have, or have planned to do so, are false," she said in a statement.
"I only contemplated legal assistance (e.g., mediation) as a way of helping me negotiate to settle the conditions of my suspension and to see what was agreed to in the party room in March [was] honoured."
Ms Deeming said all she ever wanted was to have her name cleared.
She said others acting on her behalf have failed to resolve the issue with the Liberal leadership team.
Ms Deeming claims to have advised the Victorian Liberal Party's president that she would not pursue the matter any further after the leadership team rejected her request for a "legally mediated re-do to properly settle the conditions of my suspension".
In a later statement to the ABC, Ms Deeming said her letter on Thursday was an attempt to "exhaust every peaceful option".
"My mention of legal challenge was to help provide a case for the Liberal Party to legally justify a re-do of the meeting," she said.
"I just wanted to stop going around in circles and be done with the whole saga."
Pesutto had warned of expulsion motion
Speaking on Friday, Mr Pesutto said expulsion was "a very serious thing", but it was "on the table".
"I'm going to be consulting with my colleagues on this," he said.
"We want to reform the party. We want an inclusive, welcoming party that's focused on being a good opposition and holding a corrupt government to account.
"We can't do that if we're constantly distracted by one issue or another."
His warning came as federal Opposition Leader Peter Dutton threatened to stage a federal intervention to resolve the crisis.
"I wouldn't rule out federal intervention and I make it very clear to the Victorian division I want this mess sorted out as soon as possible," Mr Dutton said on Friday.
The Liberal Party has been in turmoil amid allegations of internal bullying as well as threats of legal action against Opposition Leader John Pesutto from Ms Deeming prompting a fresh expulsion motion against her.
When asked about the issue, Victoria's Minister for Women Natalie Hutchins said Ms Deeming was elected amid a vacuum of female representation within the Liberal Party.
"They clearly were desperate for candidates at the election and we've got people like Moira Deeming who, quite frankly, should have been vetted out by their processes as a party," she said.
