New United Future leader Damian Light says he's contemplating a replacement for the moribund party.
Mr Light took over from previous leader Peter Dunne a month before the election, in which United Future failed to make it back into Parliament.
"We might look at setting up another party," he told the AM Show on Tuesday.
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His announcement follows a letter sent out by party executives to its constituents, understood to have been written by Mr Light.
It says a motion has been passed unanimously to disband the party on the back of poor performance that saw it win just 0.1 percent of the vote this year.
"I still want to stay around. I haven't been looking at other parties or my future yet," Mr Light said on the AM Show.
"We've been having conversations about what we're going to do."
It is believed the party decided it would disband at an annual general meeting over the weekend.
Mr Light had earlier expressed he wanted to pull the party back towards Labour because it has "more of a social conscience" than National.
"We're extremely proud of what we've achieved over the past 15 years, working alongside the government of the day, both National and Labour," Mr Light told members on Monday.
He also admitted in the lead-up to the election that most voters wouldn't even realise United Future still exists, because media coverage was weighted so heavily in favour of the major parties.