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"I think the atmosphere within the party is improving as party elders and members have engaged in talks aimed at understanding one another," he said.

Somchai, who is a deputy party leader, dismissed speculation that the party was on the verge of breaking up. He argued that under the existing political system, MPs were not allowed to establish a new party banner on a whim, as "rumour mongers" had suggested.

He said he was not in a position to judge how or why People Power MP Sakda Kongphet accused an aide of the prime minister of seeking a bribe.

"We should talk more among ourselves before making any move," he said, reminding Sakda to consult party elders instead of making a hasty decision he might regret later.

He was also unaware that former prime minister Thaksin Shinawatra now had certain allies trying to stab him in the back. Thaksin had quit politics, he said.

Observers believe Thaksin, who is Somchai's brother-in-law, retains his

 political influence, particularly within the ruling party.

Prime Minister Samak Sundaravej, who is also PPP leader, refused to comment on party infight

 ing and ignored all questions posed by reporters about links between his aide Thiraphol Noprumpha and the bribery allegation.

Meanwhile, House Speaker Chai Chidchob denied that his son - banned Thai Rak Thai executive Newin - wielded influence in the PPP.

"Newin is one of the 111 party executives banned from political activities for five years and I see only the media trying to hype up Newin's involvement in the 'Gang of Four'," he said.

Chai said Newin was not in a Gang of Four, which wielded control over the PPP and allegedly selected the new Cabinet. The four have been reported as Samak, his aide Thiraphol, Newin and Finance Minister Surapong Suebwonglee.

A source from the PPP said it was likely that Sakda and other MPs from the Isaan Pattana (Developed Northeast) faction had been encouraged to "act up" by certain senior figures linked to the ruling party who had seen their influence receding.

And while conflict was growing within the party, it appeared Samak had avoided dealing with the issue, the source said.

"The party's seniors will need to talk in order to end its problems. This is to retain the government's stability," said the source, who requested anonymity.

Meanwhile, deputy PPP spokesman Suthin Klangsaeng said Newin had phoned Thaksin to deny allegations he double-crossed the former premier.

"Newin told me that he called Thaksin to explain about rumours that he was back-stabbing him. And Thaksin told him that he had no hard feelings about the rumours," Suthin said.