Nationals deputy Bridget McKenzie will move her electoral office into the seat of an independent, likely in a bid to challenge for the party's leadership.
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Senator McKenzie's new office will be located in the rural Victorian seat of Indi, held by Cathy McGowan, The Australian reported on Wednesday.
To contest the Nationals leadership, Senator McKenzie needs to be in the lower house.
Her Senate term does not expire until mid-2022.
It comes at a critical time for the coalition, which is facing minority government following the Wentworth by-election.
As one of five, soon to be six, crossbenchers, Ms McGowan said on Monday that she wanted the government to see out its term and did not want an early election.
She has held the north-east Victoria seat since claiming it from the Liberal Party in 2013 when she defeated Sophie Mirabella.
Ms McGowan did not oppose Senator McKenzie moving her office about 300km from Bendigo.
"My focus is putting Indi first. My job is to represent Indi and to keep Indi independent and orange," Ms McGowan told The Australian.
Labor's regional services spokesman Stephen Jones said "we all know" the move is about Senator McKenzie's leadership ambitions.
"She threw some uncertainty about who the next leader of the National Party was going to be - this week we understand why," Mr Jones said.
"It appears the Nationals have learnt nothing from the results in Wentworth over the weekend."
Australian Associated Press
