Coalition softens nuclear stance as Liberals and Nationals seek compromise after election split

The coalition’s nuclear energy policy has been watered down as a compromise to patch up a fractured partnership.

The Liberals have given in-principle support to removing a federal moratorium on nuclear power after a virtual hook up on Friday.

The agreement - which falls short of the policy the coalition took to the election to build seven power plants - paves the way for Liberal leader Sussan Ley and Nationals counterpart David Littleproud to iron out a formal pact.

It was one of four policy demands the Nationals issued before splitting from the coalition.

Others included boosting rural phone connectivity, installing divestiture laws against big supermarkets and keeping a commitment to start a regional investment fund.

Liberal MPs say the policies were largely non-controversial, but the Nationals’ issuing of an ultimatum so soon after an election loss needlessly soured the relationship.

“There was frustration with the actions of Nats but recognition we’ve got to get this done,” one Liberal source told AAP after the party room meeting.

Policy details are set to be worked out by shadow ministers and party rooms ahead of them being taken to an election.

Ms Ley and Mr Littleproud will work through the finer details of a coalition agreement during meetings over the coming days.

This includes standing up a joint shadow cabinet before parliament reconvenes on July 22, but that is also expected to be resolved relatively quickly as both sides had been ready to announce their own leadership teams.

Turmoil over Mr Littleproud’s leadership added fuel to the political fire as the coalition saga dragged across four days.

Asked if Mr Littleproud had his full support, former Nationals leader Michael McCormack on Friday replied: “I’m ambitious for him.”

It was the same comment former prime minister Scott Morrison used before he replaced Malcolm Turnbull as Liberal leader in 2018.

Mr McCormack later walked back the comment, saying it was made in jest and hosing down any speculation of an imminent challenge.

“I’m not planning to roll David any time soon,” he said.

But he hinted at ambition when asked whether he wanted the top job in the future.

“You’re not going to put a red line through your name forevermore,” he told ABC TV.

“David Littleproud is safe in the position for as long as the party wants to keep him there.”

The public criticism came after Mr McCormack was dumped from the shadow ministry a day earlier.

Multiple National sources have told AAP leadership speculation was overblown and only reflected personal grievances from a small number of people.