Former deputy prime minister and party leader Barnaby Joyce will leave the Nationals after what he said was an irreparable breakdown in the relationship amid speculation of a defection to One Nation.
The announcement comes hours after reports rose that the New England MP was in "advanced talks" with Pauline Hanson's conservative party.
While Joyce did not confirm the move, he said his decision to part with the Nationals was over policy differences.
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"My relationship with the leadership of the Nationals in Canberra has unfortunately, like a sadness in some marriages, irreparably broken down," he said in a statement.
"The instructions that during the federal election I was not to campaign outside New England as that did not represent the views of the Nationals, then after the election being moved on for 'generational change' and just the atmospherics in the party room, where I am seated in the far corner of the Coalition in the chamber, means I am seen and now turning into a discordant note.
"That is not who I want to be.
"More importantly our position in continuing to support Net Zero with the massive schism and hurt to my electorate, to small businesses, to the environment, to the poor, to the defence of Australia and creating hate between lifelong friends in my community makes continuing in the Nationals' Party Room in Canberra under this policy untenable."
Opposition Leader Sussan Ley's stance on net zero has spurred infighting, with senior Liberal Andrew Hastie and his colleague Jonathon Duniam publicly raising concerns over the matter.
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Joyce said he will complete his term as New England MP but will not run for the seat at the next election.
"I am free to now consider all options as to what I do next," he said.
Joyce, a former Queensland Senator who resigned to contest New England, first won over the regional northern NSW seat in 2013.
He has held the 111,000 voter-strong electorate since.
The 58-year-old has been a member of the Nationals since 1995, and is known for crossing the floor almost 30 times during his political career.
He was elected as the Nationals leader and sworn in as deputy prime minister in 2016 and maintained his position during a cabinet reshuffle the following year and at the next federal election.
He lost the party leadership to David Littleproud after a three-way contest in 2022.
Littleproud has yet to comment on Joyce's announcement.
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Hanson told The Sydney Morning Herald yesterday that she would be "happy" to have Joyce join One Nation if he wanted to.
She also suggested any other dissatisfied Coalition members would be welcome.
Just last week, the Nationals Tamworth branch chairman, Steven Coxhead, resigned after a decade in the role to defect to One Nation.
"I have resigned as I believe the party does not adequately represent NSW regional and rural voters any more," he said.
One Nation saw a surge at this year's federal election and experienced its highest level of support since 2017.
In New England, the party captured 10 per cent of the vote, more than double the 4.7 per cent recorded in 2022.
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