ATTORNEY-General John Rau has warned if laws to establish an anti-corruption body are forced into deadlock negotiations, the state could "be left with the appalling option of no ICAC''.

Parliament returns on Tuesday and the Independent Commissioner Against Corruption legislation is due to be debated in the Legislative Council.

MPs have been at loggerheads for months over a number of amendments.

"Rather than negotiating through these issues ... the opposition remain determined to drag the Bill to another deadlock conference and deadlock ICAC in limbo,'' said Mr Rau, who has previously been reluctant to speak publicly about negotiations over the ICAC Bill.

The major sticking point is an amendment by Independent MLC Ann Bressington, which has been supported by the Liberals, requiring both Houses of Parliament to approve the appointment of the commissioner.

The government wants the Governor to have that power and believes the extra scrutiny of Parliament would put off some candidates.

If the Bill is forced into deadlock negotiations Mr Rau fears "`we would be left with the appalling option of no ICAC, or an ICAC headed by a second-tier Commissioner''.

"Neither option is acceptable or in the public interest,'' he said.

Opposition legal affairs spokesman Stephen Wade has previously criticised the government for its legislation, which he describes as "ICAC-lite'', and stated Liberal support for Ms Bressington's amendment holds firm.

