"Mahachon will go on fighting under the current banner," he said.

Speculation about a possible merger heightened after Sanan reportedly met Chat Thai leader Banharn Silapa-archa, who is increasingly regarded as a key player in the upcoming general election.

Mahachon, which is in need of a new and presentable leader, failed to attract former World Trade Organisation chief Supachai Panitchpakdi as its new head honcho.

Supachai told the media that he was still busy with his work as the head of the United Nations Conference on Trade and Development with the organisation in the middle of reform.

Supachai refused to confirm whether Sanan had contacted him about the matter.

Sanan also said he had not approached Supachai, because of his current assignment. However, the future may be different, he said.

Sanan predicted that the ruling Thai Rak Thai Party would be dissolved and said some people had already quietly registered for a new party to be formed.

The veteran politician also said the election would probably not take place on October 15 as tentatively scheduled due to the need to have new election commissioners installed.