Nationals pull plug on coalition agreement with Liberals

Nationals Leader David Littleproud and Liberal Leader Sussan Ley have failed to strike a political agreement in opposition, signalling a coalition break-up.

The Nationals have abandoned their traditional political marriage with the Liberals, following a disastrous result for the coalition in the federal election.

Nationals Leader David Littleproud announced an agreement couldn't be reached and his party "will sit alone on a principled basis".

"It's on a principled position of making sure that those hard-fought wins are maintained and respected and we continue to look forward," Mr Littleproud told reporters in Canberra on Tuesday.

"What we are saying is that what we secured in the former coalition are policies that should remain.

"We don't want to have to look back and ... re-prosecute the case."

The Nationals spearheaded the coalition's nuclear energy policy to build seven reactors across Australia and Mr Littleproud secured a multi-billion regional fund that would disperse $1 billion year.

Moderate Liberals in inner city seats have called for the nuclear energy policy to be dumped and a stronger climate policy to be taken to the next election.

Opposition Leader Sussan Ley faces the task of rebuilding the Liberals after a wipeout at the May 3 election.

Mr Littleproud said the door remained open for a future agreement.

"She is a leader who needs to rebuild the Liberal Party," he said.

"They are going on a journey of rediscovery, and this will provide them the opportunity to do that without the spectre of the National Party imposing their will, but setting clear boundaries and parameters about what's important to us."