Australian minister Bridget McKenzie has denied she will resign from her position on the frontbench by Friday afternoon.
Reports suggested she was being 'pushed to go' after she was criticised for her handling of $100 million worth of grants before the May federal election.
Michael McCormack, Prime Minister Scott Morrison and Treasurer Josh Frydenberg met overnight to discuss the decision, according to Sky News Political Editor Andrew Clennell.
He said the conversation resulted in the decision that Ms McKenzie 'must go', after Mr Morrison decided he had 'had enough'.
But Ms McKenzie's office told Daily Mail Australia she has no plans to leave.
'The Minister is not resigning,' a statement from her office read.
'She is actively engaging in the process and is confident there has not been a breach in Ministerial standards.'
Pressure has been mounting for the resignation of Nationals Deputy leader Bridget McKenzie (pictured) over the sports fund scandal
Mr Morrison referred the embattled cabinet minister's decision to award a $36,000 grant to a shooting club she was a member of to the head of his department.
The former sports minister is under immense pressure over a $100 million grant scheme the auditor-general found favoured clubs in marginal seats her party was targeting before the election.
She reportedly favoured organisations in areas the Coalition was 'targeting' to help them win the federal election.
In fact, the auditor-general found 73 per cent of the projects Senator McKenzie approved were not recommended by Sport Australia, which assessed applicants based on merit.
Cabinet secretary Philip Gaetjens will check whether her actions breached ministerial standards.
Labor have also called for Senator