Riverina MP says 'no vacancy' for National Party leadership following Bridget McKenzie sports grants resignation

Senator McKenzie stepped down from the front bench on Sunday after a Department of Prime Minister and Cabinet investigation found she had breached ministerial standards.

National Party MPs and Senators will vote on a replacement deputy leader on Tuesday, and former deputy PM Barnaby Joyce said he would stand for leader if Mr McCormack's position was also put to a vote.

Mr McCormack said on Monday morning that the party's top leadership role, which also grants the position of deputy PM, would not be subject to a spill.

"The fact is, there is no vacancy for the National Party leadership," Mr McCormack said.

"We have a vacancy for the deputy leadership of the National Party. We will have a meeting [Tuesday], 9:00am, and we will decide that position then."

On Monday evening, Queensland Nationals MP Llew O'Brien told News Corp that he would move a spill motion on Tuesday.

Senator McKenzie quit over a finding that she had presided over the decision to award a $36,000 grant to the Wangaratta Clay Target Club after being gifted a club membership.

Mr McCormack disputed an Auditor General's report that found the wider $100 million Commonwealth Sport Infrastructure fund was biased in favour of low-scoring applications in marginal seats.

"The fact that the secretary of the Prime Minister and Cabinet has said that there was no bias shown in the actual delivery of the sports grants program shows that everything procedurally wise was above board with this program and Bridget oversaw that," Mr McCormack said.

Leaks to the ABC have shown that grant applications were colour-coded according to the political party that held the electorate where the projects were located.

The Apex Club of South Wagga was denied its $385,448 request to build a new bike track at Lake Albert despite scoring highly in the assessment process.

Labor Senator Deborah O'Neill said the issue "doesn't end with Bridget McKenzie's resignation" and "has a long, long way to go".

"The Morrison Government has done nothing to reassure the people of Riverina that their taxpayer dollars are spent honestly and transparently in the public's interest," she said.

"Instead more and more evidence is emerging of millions of dollars being siphoned into their industrial-scale pork barrelling program in LNP seats."

In a brief media appearance on Monday afternoon, Senator McKenzie denied she was being made a scapegoat for the government.