John Banks is looking to revive his political career with a position within either Act or National for next year's general election.
It is understood the former Auckland mayor, ousted by Dick Hubbard in October, is having talks with the leadership of both parties and will make a decision about
his political future early next year.
Act appears to be the more interested in working with Mr Banks, with leader Rodney Hide saying he would like to have him on board.
Mr Banks confirmed to the Herald that he would have a political role to play next year and said he was close to the leadership of both parties.
"I'm highly ambitious for this country, and to keep the dream alive we must get rid of this Labour Government next year.
"I will be working with both National and Act on the centre-right of politics to achieve just that."
Mr Banks, who was National's Whangarei MP for from 1981 to 1999, said both parties needed to be strongly represented in Parliament.
"The centre-right of politics has an identity crisis and needs a sense of purpose and direction and the leadership of National and Act need some compelling enforcement."
National Party leader Don Brash and president Judy Kirk both declined to comment about any role Mr Banks might have within the party.
However, it is thought the feeling among National MPs is lukewarm towards Mr Banks making a return.
The cautious approach is believed to be because of his defeat in the Auckland mayoralty race and because of a preference to promote new talent within the party.
Mr Hide said Mr Banks still had a huge contribution to make.
"He has a big following in Auckland and around New Zealand, and he brings incredible drive and campaigning ability and it would be good to have him helping Act."
Mr Hide said if Mr Banks was to put his name forward as a candidate, he was sure both parties would be keen to have him.
