FEDERAL MP Bob Katter says his party could co-operate with a new party reportedly backed by billionaire Clive Palmer.

The suggestion came after Mr Katter held talks with Queensland MP Alex Douglas yesterday, but, while not rejecting the idea of co-operation, he hasn't made any commitment on such a move.

Dr Douglas, a state MP for the Gold Coast seat of Gaven, says he is forming his own party and will make a push into federal politics with the help of Mr Palmer.