Liberal Party stalwart and former Victorian premier Jeff Kennett does not believe that his party is in a "panic" about One Nation and has predicted closer alignment with Pauline Hanson's party in Parliament.
Mr Kennett has also attacked conservative Liberal Senator Cory Bernardi who was reportedly thinking of splitting from the party, saying the outspoken senator was not worth the paper his name was written on.
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Growing speculation Cory Bernardi is looking at a 'Trump-inspired' defection from the Liberals in the new year amid calls for the conservative senator to quit the party. Courtesy Seven News.
"He has no record of note in politics; he has hidden under the umbrella of the Liberal Party for years and, if he was to walk down the main street of Melbourne, Sydney or Brisbane, not one person would recognise him," Mr Kennett told ABC morning radio.
"This is an individual who, for some ego-driven reason, believes he has the answers to the world; he does not."
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As reported by Fairfax Media, there are concerns in the Victorian Liberal Party that, unless the party becomes more conservative, it will lose voters to One Nation.
Recent polling showed Ms Hanson's party was poised to capture nearly 10 per cent of the Victorian statewide vote.
Mr Kennett dismissed claims that the Victorian branch was in a panic about One Nation, saying that Liberal governments would have to learn to work with One Nation to get policy outcomes.
"I am not fearful of Pauline Hanson, I respect the people that support her party," Mr Kennett said.
"Rather than argue that she or the Liberals are in any way in conflict, you might actually find in the not-too-distant future, there is a new alignment taking place that will deliver good government, good policy and security."
The alignment would not be a formal coalition, Mr Kennett said, rather a close working relationship to purse good policy and shared goals.
"Rather than be scared of what is happening, it might actually present some opportunities."
He also said current voter engagement with major parties had waned because of a lack of leadership and vision.
The key to remaining strong as a party was to deliver good government, he said.