Former Liberal Party boss Brian Loughnane is setting up a new company and has no immediate interest in a diplomatic posting.
Tony Abbott has reportedly asked Prime Minister Malcolm Turnbull to appoint Mr Loughnane, who recently resigned as the party's federal director after 12 years at the helm, as Australia's next ambassador to the Vatican.
But Fairfax Media has confirmed Mr Loughnane – who is married to Mr Abbott's former chief of staff, the controversial Peta Credlin – is currently setting up a new high-level strategic business advisory service, drawing on his experience in the resources sector.
Well-placed sources say his plans are "well advanced" and he has no immediate interest in moving abroad.
It's believed Mr Abbott put the idea to Mr Turnbull because he was disappointed with the way Mr Loughnane was treated after the September leadership coup. It's the latest in a series of interventions Mr Abbott has made since his ouster.
Mr Loughnane has been laying low since resigning as party director in October, saying the leadership change marked an "appropriate time" for him to call it quits. He was subsequently replaced by party stalwart Tony Nutt.
Mr Loughnane married Ms Credlin in 2002. She became Mr Abbott's chief of staff in 2009 and was instrumental in the Coalition's 2013 election win.
But the marriage was a source of some controversy, with party figures describing it as a conflict of interest that was detrimental to the government's interests.
Ms Credlin's tough management style also alienated Liberal colleagues but Mr Abbott was always staunchly loyal to her, refusing to heed calls that he find a replacement.
Former QC John McCarthy is Australia's current ambassador to the Holy See, taking up the role in 2012.
