Workplace Relations Minister Bill Shorten has rejected reports that he had been shut out by the Prime Minister as ''baseless and inaccurate'' as leadership speculation continues to dog the government.
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Supporters of both Julia Gillard and former prime minister Kevin Rudd took to the media to hose down reports of a leadership challenge before parliament rises next week ahead of the election.
Mr Shorten a key backer of the PM when she took over from Mr Rudd, said on Friday morning that he continued to have ''a strong working relationship with the Prime Minister''.
"I have a great deal of respect for the Prime Minister and continue to support her,'' Mr Shorten said.
Speaking to the Seven Network on Friday morning, Mr Rudd said the latest speculation was an inevitable part of politics and the country has ''had a gutful'' of the ongoing uncertainty in the ALP.
But he tempered his previous assertions about his renewed leadership ambitions saying: ''I don't believe there are any circumstances under which that would happen.''
Mr Rudd had previously been unequivocal about the issue saying there were ''no circumstances'' under which he would return to the job.
Shadow treasurer Joe Hockey pounced on the comments saying that Mr Rudd was subtly altering his stance.
''He said previously 'there are no circumstances', now he says 'I believe there are no circumstances'. These are weasel words,'' Mr Hockey told Seven.
On Friday, the prime minister's trusted deputy Wayne Swan refused to say if he'd retreat to the backbench if Mr Rudd mounted a successful challenge.
He said leadership speculation was built on ''fictional'' media reports.
''The fact is when you pick up the papers and read the stories in the morning, what you find is a lot of rubbish,'' he told reporters in Brisbane.
''So I would urge people not to take any notice of the rubbish that have been printed on the front pages of newspapers on a daily basis.''
Mr Swan was the latest in a line of MPs and union officials commenting on the leadership issue in the past two days.
Cabinet minister Anthony Albanese, a confidant and supporter of Mr Rudd, told the Nine Network on Friday morning: ''There is no challenge, there's nothing happening."
Another Rudd supporter, Labor backbencher Darren Cheeseman, who also played down the prospect of a leadership change.
''We will be proceeding to the election with Julia as our leader,'' he told reporters as he left Parliament House on Thursday evening for his ultra-marginal Victorian seat of Corangamite.
Earlier in the week, one of Mr Rudd's key supporters and number-counters, Joel Fitzgibbon, said the leadership issue was settled in March and that there was no chance of a change before the election.
Such concessions by the Rudd camp come as union leaders unite behind Ms Gillard.
Labor's national president Tony Sheldon warned MPs what would happen if they make the switch to Kevin Rudd.
''If Kevin Rudd was there, he won't be elected (by the voters) because the newspapers, the media will be turning around and making an attack on Kevin Rudd,'' he said.
Mr Sheldon suggested ''powerful forces'' with influence were going after Ms Gillard.
''They want to see an Abbott government. They are determined to do whatever they can,'' he told ABC Radio on Friday morning.
''At the moment if ever there was a change in the leadership – which there will not be – we should get behind the Gillard government.''
Australian Workers Union boss Paul Howes said on Thursday that the union movement was "united" behind Ms Gillard.
with AAP
