Confusion surrounds the departure of federal independent MP Peter Slipper from Queensland billionaire Clive Palmer's new political party.

The former Liberal MP applied to join the United Australia Party (UAP), which is now changing its name to the Palmer United Party.

Yesterday the party issued a statement indicating Mr Slipper's application had been accepted.

But just hours later, it issued another statement reversing that decision.

"Under clause D26 of the constitution of the party, a majority of foundation members have decided that the membership for Peter Slipper has ceased forthwith," the statement said.

The party would have bypassed some internal registration requirements by recruiting a sitting member of Parliament.

Mr Palmer says he had initially been told he could not reject Mr Slipper's membership because it could have amounted to discrimination.

"We got legal advice on it and subsequently the executive decided to terminate Mr Slipper's membership," he said.

A short time after the statement was released, Mr Slipper's office also released a statement.

It denied the former speaker had been dumped, saying he had withdrawn his nomination.

Mr Slipper says he was invited to join the UAP and was prepared to assist the party's registration bid and advance "political diversity" by joining.

"I was unaware that any announcement was being made today of my possible involvement with the party and I regret that this occurred without my knowledge," he said.

"I wish Clive Palmer and the UAP well."

Mr Palmer says he did not ask Mr Slipper to join his party, but accepts others may have.

"I didn't personally speak to Mr Slipper about his membership application," he said.

"Whether other people have talked to him, I can't speak for them.

"It is of no consequence. I think at the end of the day it rests with the executive to decide what they want to do under the constitution."

Mr Slipper currently holds the Queensland Sunshine Coast seat of Fisher, which he won under the Liberal-National Party banner in 2010.

However, the UAP had already endorsed its member Bill Schoch to contest the seat in the September election.

Meanwhile, Mr Palmer has taken to Twitter to announce the UAP is changing its name because it faced months of legal challenges from the Australian Electoral Commission.

The @unitedausparty has changed its name to Palmer United Party to thwart legal roadblocks from @juliagillard and @tonyabbottmhr #auspol ... — Prof Clive Palmer (@CliveFPalmer) May 12, 2013

The party will apply for registration tomorrow.