Scott Morrison has indicated he is likely to strip Christian Porter of more responsibilities as the attorney-general sues the ABC for defamation.
Mr Porter has launched legal action against the public broadcaster over a story about rape allegations against a senior minister.
The attorney-general was not named in the story but his lawyers claim Mr Porter was easily identifiable.
He later came forward to reveal he was the minister in question.
The prime minister has sought independent legal advice on any conflicts of interest that might arise as a consequence of the court case.
“I have received that advice and I am now taking advice through the department regarding how that sits with the ministerial standards,” Mr Morrison told reporters in Canberra on Tuesday.
Mr Morrison has already proposed handing elements of the attorney-general’s portfolio relating to the Federal Court and ABC to other ministers while the case is under way.
“I will be making further decisions on that matter and I will alert you to those when they are made,” he said.
Labor pursued the “hopeless conflict of interest” at a parliamentary hearing in Canberra.
Senator Murray Watt listed Mr Porter’s portfolio responsibilities including the administration of criminal justice, issuing ASIO warrants, courts and tribunals.
“There’s barely any role that Mr Porter is not conflicted from. How can he remain as attorney-general?” the opposition frontbencher said.
“How is it possibly tenable for Mr Porter to remain as attorney-general of this country when he has such serious clouds to perform most of his duties?”
Acting Attorney-General Michaelia Cash said the prime minister would carefully consider the solicitor-general’s advice.
Under sustained questioning, Senator Cash continually referred to the legal advice and promised Mr Morrison would respond appropriately.