The Nationals closed its doors to outsiders for more than two hours at its Federal Council meeting in Canberra today to look at options suggested in a report by former leader, John Anderson, for the party's future.

While a merger was not on the agenda in terms of motions up for debate, there was apparently "spirited debate" held behind closed doors as the party's senior figures both federally and from State branches argued over the future of the party.

A party spokesman said it was agreed this afternoon that a merger in the short term was not an option, but there would be further discussions with the Liberals in coming months.

The spokesman said this afternoon it was realised by those senior figures at the meeting that the party "can't go on" as it is - losing seats federally despite a long and proud history, he said.

A different approach was needed, and the federal council agreed to sit down and do more work before a likely vote being put to rank and file party members to ulitmately decide the future structure of the party.

The decision today keeps the merger question well and truly alive, which has been a point of tension between the two parties this year since the election loss last November.

Mr Anderson made no specific recommendation to merge, but has voiced his strong personal opinion that this happen, arguing the voice of farmers and regional people was becoming irrelevant at the ballot box.

The spokesman said it was important that the party not only stay relevant to its traditional supporters, but also to new supporters.