Ms Ley and her counterpart David Littleproud have been attempting to negotiate an end to the political divorce, sparked two weeks ago by a disagreement over hate speech laws.
After Ms Ley demanded a six-month suspension for three Nationals frontbenchers who breached shadow cabinet solidarity by voting against the legislation, the regional party has come back with a counteroffer.
The Nationals suggested all its shadow ministers spend two weeks on the back bench to take collective responsibility for the breach.Â
A source close to Ms Ley said she did not consider the offer as credible and described it as a delaying tactic.
During the January dispute over Labor's hate crimes laws, Nationals frontbenchers Bridget McKenzie, Susan McDonald and Ross Cadell crossed the floor to oppose the bill, breaking with their colleagues in the Liberal party who supported it.
The trio offered their resignations to Ms Ley and when she accepted them, the remaining shadow ministers staged a mass walkout in protest.
Ms Ley is expected to announce a new Liberal-only front bench by Monday and possibly as soon as Friday afternoon.
The decision to appoint a wholly Liberal shadow ministry will make it harder to reconcile the two parties, as MPs who are promoted to the front bench would face demotion when the former allies reunite.
Some conservative figures have floated a council of senior Liberals and Nationals to help mediate the split.
Former prime ministers John Howard and Tony Abbott, along with former Nationals leader John Anderson, are among the names being discussed.
Liberal frontbencher Melissa McIntosh, who worked for Mr Howard when he was prime minister, said he would be welcome to step in.
"There's no better person than Mr Howard in bringing the broad church back together," she told reporters in Canberra on Friday.
Ms McIntosh said Mr Howard would help the parties shift focus after weeks of ugly political infighting.
Some Liberals and Nationals believe their parties can go it alone, but others believe the parties will only be successful if they can restore the coalition partnership.
Liberal senator Jane Hume said her party would always be stronger with the Nationals, but shouldn't compromise its values.
"We need to start building our policy agenda based on our own party's values and our own priorities," she told reporters in Canberra.
"The Nationals are better when they're Nationals. Liberals are better when they're Liberals. But we're stronger when we're together."
However, Senator McKenzie argued the Nationals could be successful without their long-term ally.
"The National Party has been a party of government in Canberra for over a century, long before the Liberal Party arrived on the scene," she told reporters at parliament house.
"We've done it before, we can do it again."
