Gillard aware of minister's 'antics'

The allegations are being treated as future leadership manoeuvring.

In the first sign of trouble for the minority Labor Government that has been in power for just two months, the campaign to undermine a senior minister has hit fever pitch in Canberra over the past two weeks.

The minister strongly denies the behaviour, but persistent allegations prompted one backbench MP to alert the Prime Minister's office to what was being said about the minister over a long period of time.

The concern was raised a month ago after the MP heard persistent allegations about the minister's behaviour.

The MP, who spoke on condition of anonymity, said he had been surprised by the scope of the rumours and thought it prudent to raise the issue.

"I raised it because if you hear things like this you should make the leadership group aware of what is being said," the MP said. The MP added that the Prime Minister's office indicated it was already aware of the allegations.

But behind the scenes the issue has been discussed at the highest levels of the Gillard Government in the context of a campaign to undermine the minister.

The minister himself has strongly denied any wrongdoing and said the allegations were untrue.

"I have a categorical denial for you," he told The Sunday Mail's sister newspaper, Sydney's The Sunday Telegraph.

"If you name me, I will sue."

It is understood that Ms Gillard's office is treating the allegations as political manoeuvring by future leadership aspirants in a bid to discredit the minister, whose political star has been on the rise.

The internal stoush is a serious political concern because any disunity in the party's highest ranks would be destabilising at a time when the fledgling minority Government needs unity.