The ABC understands Prime Minister Julia Gillard has lost significant support in the Labor caucus.It comes after a week in which Labor disunity was on full display in Canberra and former prime minister Kevin Rudd re-emerged very publicly.
ABC Insiders presenter Barrie Cassidy says Mr Rudd is the only figure being considered as an alternative prime minister.
Mr Cassidy spoke about the tensions within the party on Insiders this morning.
"I am now very strongly of the view that Julia Gillard will not lead Labor into the next election," he said.
"I think there will be a change either by her own hand or the actions of others. And I'm not relying entirely on guesswork here."
It hardly comes as a surprise that Kevin Rudd is still seeking the Labor leadership, even if covertly, He is like rust; he never sleeps. But the appalling recent poll results might be the catalyst for a late change of plan for the ALP, as MP's try desperately to cling to their seats.
And make no mistake; the polls are simply dreadful:
The week of turmoil for Labor began with disastrous polling showing the party could be left with as few as 40 seats in the Federal Parliament.
Throughout the week a number of Labor MPs ridiculed the party's chances of winning the September 14 election, with one backbench MP comparing Labor to the Titanic.
"It's like the Titanic - we're in the final scenes. Third class has realised the doors are locked and they're not getting out and first class are running around looking for a dress to put on," the MP, a key supporter of Mr Rudd, told ABC News Online.
It was also revealed two long-serving MPs had already packed up their Canberra offices in preparation for the electoral wipe-out.
The next week or two could see some very interesting developments over in the West Island. We will be watching with much interest.