Malcolm Turnbull is digging in for a fight, refusing to stand down from the Liberal leadership despite a growing belief his position is untenable following a mass revolt over emissions trading.
The issue is likely to come to a head at a party room meeting on Tuesday morning, where Tony Abbott or - potentially - Joe Hockey could stand for the leadership.
But, refusing to go quietly, Mr Turnbull is challenging the party to blast him out.
"There's no way I'm stepping down, resigning, stepping backwards or anything like that," Mr Turnbull told ABC Television on Friday.
Mr Turnbull said he believed Mr Hockey would back him.
The Liberal Party has descended into chaos following a disputed party room decision on Tuesday to support a deal with the Rudd government to pass its emissions trading scheme.
Since Wednesday, 14 MPs and senators have resigned from the front bench or from key party roles in protest at the ETS decision.
Tony Abbott and nine other colleagues who resigned en masse on Thursday are demanding the leadership be resolved at the party room meeting.
Mr Abbott told AAP it was his "strong intention" to contest the leadership but stressed the key for him was a change of policy and a united party.
"This isn't all about me," he said.
He flagged he'd be willing to stand aside and give Mr Hockey a clear run for the seamless transition that many are seeking.
"But if Joe's not a candidate, I'm there with bells on," he said.
Mr Hockey has repeatedly stated he wouldn't challenge Mr Turnbull, which makes his candidature less certain given the Liberal leader's refusal to stand aside.
But Liberal sources acknowledged there were negotiations on a possible joint ticket between Mr Hockey and Queenslander Peter Dutton, who would be in the running for deputy.
On Friday, Mr Hockey was keeping out of the spotlight and instead turned to social networking sites Facebook and Twitter to ask the community for their opinion on the ETS policy and political debate.
His Facebook page was inundated with hundreds of responses, many urging the coalition to defer a decision on the ETS.
It gives Mr Hockey the opportunity to modify his previous support for the ETS deal, allowing him to cite public opinion for any change of heart.
The Rudd government was turning the screws on Mr Hockey, urging him to stick by the deal the Liberals negotiated with the government.
Michael Johnson, one of the 14 Liberals to resign, called on Mr Hockey to make his intentions on the leadership clear.
"I would encourage him to come out and say that I'll be a candidate," he told Sky News.
"I'm prepared to support either Tony or Joe, but I would feel more comfortable if someone came out and said I'm going to take us to victory at the next election."
Despite his increasing isolation, Mr Turnbull is remaining defiant.
He likened the actions of his opponents to "political terrorism".
"They have basically tried to blow up the party," he told thepunch.com.au
"They are not representative of the party, and they are out of step with the public."
Even those who've supported Mr Turnbull's position on the ETS are beginning to describe his position as untenable.
"Malcolm has been sufficiently damaged," a shadow cabinet member told AAP.
However, Liberal powerbroker Nick Minchin still believes there is an out for Mr Turnbull if he agrees to defer the legislation until after the Copenhagen climate change meeting in December.
"If Mr Turnbull agrees with our request that a compromise position be adopted ... then this matter is resolved instantaneously and there will be no leadership consequences," he told reporters.
But a leadership change may be the only way to address the issue, he later told ABC Television.
"Nobody likes leadership changes.
"But this is a serious matter of policy and if the only way to address this fundamental policy issue is to have a change of leader, then Tony has the right to give the party that opportunity on (Tuesday) morning."
Simon Birmingham, another strong Turnbull supporter who has been behind the ETS deal, indicated on Friday that even he was wavering on the legislation.
"I still strongly support action on climate change ... but as for this bill it is proving to be extremely divisive, not just in the Liberal Party but in the wider Australian community," he told AAP.
"That's something we have to be mindful of."
The Senate failed to meet a Friday afternoon deadline to pass the legislation and will now sit again on Monday.
The timing of the party room meeting - and whether it heralds a change of Liberal leadership - will be crucial to Labor's chances of getting the ETS bill through the Senate.
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