Victorian Liberal leader John Pesutto says exiled MP Moira Deeming has sent him a letter flagging legal action, a day before her colleagues are due to vote on whether she should be permanently expelled from the parliamentary party.
Ms Deeming was suspended from the party room for nine months over her involvement with an anti-trans rights rally organised by activists Mr Pesutto alleged had associated with neo-Nazis.
Last week, she indicated she would take legal action challenging her suspension, before backtracking on Saturday, when she said she had no plans to sue the party and only "contemplated legal assistance" as a means to negotiate the conditions of her suspension.
On Friday, Victorian Liberal MPs are due to vote on a motion seeking her expulsion from the parliamentary team.
On Thursday afternoon, a spokesperson for Mr Pesutto confirmed the opposition leader had received a letter from Ms Deeming "foreshadowing legal proceedings".
"As the matter is likely to be before the courts, he will not make any further comment," they said.
The ABC has confirmed the letter was a defamation concerns notice.
The Australian newspaper reported the letter called on Mr Pesutto to withdraw Friday's expulsion motion, make a public apology to her and pay compensation and legal costs within 28 days.
Ms Deeming has previously called for Mr Pesutto to publicly state she is not a Nazi sympathiser, accusing him of spreading "false allegations" around the rally's association with the far right.
Mr Pesutto last week said no retraction was necessary because "nothing" in a dossier circulated by him after her attendance at the rally "ever accused Moira Deeming of being a Nazi or herself having Nazi sympathies".
Ms Deeming declined to comment.
