Associate Maori Affairs Minister Dover Samuels is reportedly set to be stripped of his ministerial warrants.
But the Government is denying there is any foundation to the claim.
The TVNZ Maori-language news Te Karere said last night that Mr Samuels was under intense caucus pressure and sources said he would lose his warrants within a week.
A spokesman for Prime Minister Helen Clark said it was "news to her" and Mr Samuels said the suggestion was "mindboggling".
He had no plans to hand over his warrants, or to leave Parliament.
Mr Samuels has caused the Government some concern recently.
He publicly criticised Conservation Minister Chris Carter's Whangamata marina decision and privately raised concerns about why Mr Carter's housing and conservation portfolios were not passed on to two Maori ministers - including himself - who hold the associate portfolios while Mr Carter was overseas.
The Maori Party raised questions in the House about the issue this week.
Helen Clark has signalled she expects several older MPs to leave Parliament before the end of this term to allow an injection of fresh blood before the next election.
Mr Samuels is in that category.
He has previously rejected offers of other jobs, including that of High Commissioner to Niue.
I'm not going anywhere, says Samuels
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