
MP Prajak Kaewklahan from the Friends of Newin faction said his group might adopt the banner of Bhum Jai Thai Party, which came into existence after the Matchima Thipataya Party was disbanded.
Members of the Somsak faction have already switched to the Bhum Jai Thai banner.
Prajak said the Somsak-Newin alliance would be the second largest block of more than 30 votes - behind the Democrats - in the Abhisit Vejjajiva government.
He said Somsak and Newin had reached an agreement in principle to form an alliance and the deal would be sealed once formal meetings were held.
Although the two factions have denied that the alliance is designed to drive a hard bargain for Cabinet seats, Democrat Party secretary-general Suthep Thaugsuban hinted about upgrading the allocated portfolios.
The Somsak faction will get the Commerce portfolio in lieu of the Natural Resources and Environment Ministry allocated to it under the previous government.
The Friends of Newin faction will fill four Cabinet seats, including the Transport post, which is responsible for mass transit projects in Bangkok. Under the Somchai Wongsawat government, the faction was downgraded from four to two ministerial posts.