Queensland Deputy Premier Jeff Seeney has taken a swipe at Clive Palmer amid a war of words between the State Government and the Federal MP.

Mr Seeney has used parliamentary privilege to call the founder of the Palmer United Party (PUP) a "crook".

He seized on a report in The Australian newspaper that Mr Palmer used money from his Chinese business partners to run his election campaign.

"The best party that Chinese money can buy," Mr Seeney said.

"The best party that fraudulently obtained money can buy.

"The best party that a crook using other people's money can buy."

Mr Palmer, who is already suing Queensland Premier Campbell Newman for defamation, has rejected Mr Seeney's allegation and has denied any wrongdoing.

PUP Queensland leader Alex Douglas says Mr Seeney's comments were appalling.

"As a long-standing parliamentarian he would be aware that to use privilege in that way with regards to criticising people and particularly the manner in which he used it was entirely inappropriate," Mr Douglas said.

Mr Palmer has sent the ABC a text message to reject Mr Seeney's claim.

"Not true. Not game to say outside Parliament. No allegation that I am aware of of any wrongdoing by me just politic[s] because he and the Premier are the most unpopular politicians in Australia," Mr Palmer said.