Prime Minister Scott Morrison has been accused of proposing a $9 billion mass detention plan for asylum seekers living in Australia.

Prime Minister Scott Morrison says he “has no recollection” of a controversial proposal he reportedly put forward in the early days of the Abbott government.

A Sydney Morning Herald report has alleged Mr Morrison clashed with Tony Abbott’s treasurer Joe Hockey in early 2014, as Mr Hockey was preparing the government’s first budget.

Mr Morrison, who was immigration minister at the time, reportedly proposed the mass incarceration of asylum seekers who were living in Australia on bridging visas.

There were 30,000 such people living in the community at the time as they waited to hear the results of their applications for permanent visas.

The detention policy would have cost up to $10 billion over four years.

The Herald reports Mr Hockey “hit the roof” in response to the proposal, slamming it on humanitarian grounds, and the idea was later vetoed by Mr Abbott.

Mr Morrison’s office told news.com.au the Prime Minister did not recall the episode.

Today’s report comes less than a week after Mr Morrison confronted claims he had told his colleagues at a shadow cabinet meeting in 2010 they should use the community’s concerns about Muslim immigration for political gain.

On Thursday night, the Prime Minister told The Project’s Waleed Aly he actually wanted to dampen those concerns.

“It never happened. I’ve always been deeply concerned about attitudes towards people of Muslim faith in our community,” Mr Morrison said.

“I was acknowledging that there were these fears in the community and that we had to address them, not exploit them.”

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The shadow cabinet meeting was first reported on in 2011, but resurfaced as an issue in the wake of the Christchurch terror attack.

Scott Morrison and Waleed Aly face off on The Project Scott Morrison and Waleed Aly go head-to-head after a feud over the PM's reported remarks on Muslims.

The Herald’s article today also includes explosive accusations about Mr Morrison’s role in the fall of former prime minister Malcolm Turnbull.

Mr Morrison has always maintained he supported Mr Turnbull. He famously put his arm around the beleaguered PM at a press conference amid the leadership chaos, declaring: “This is my leader, and I’m ambitious for him!”

But Hartcher claims Mr Morrison’s supporters were working behind the scenes to destabilise the prime minister.

To that end, he reports they “parked” five votes in Peter Dutton’s column for the first leadership spill on August 21, artificially inflating Mr Dutton’s support.

The unexpectedly close result — Mr Turnbull beat Mr Dutton by 48 votes to 35 — led many to conclude the prime minister’s leadership was terminal.

Later, a group of Mr Morrison’s supporters reportedly told Turnbull loyalist Craig Laundy about the tactic, and through him, it filtered back to Mr Turnbull himself.

Mr Laundy would not be drawn on the details when news.com.au contacted him today.

“Craig spoke about the leadership change at the time and has moved on. His focus is on the people of Reid and the re-election of a Morrison-led Coalition government at the next election,” a spokesman for the MP said.

The Prime Minister’s office has denied the report.

Mr Turnbull has repeatedly named and shamed the plotters he believes undermined him since retiring from parliament, reserving particular venom for Mr Dutton and Mr Abbott.

He has never alleged Mr Morrison was involved.

“I take Scott at his word. The insurgency was led by Peter Dutton and obviously was supported by Tony Abbott and others. Scott did not support it,” Mr Turnbull said on the ABC’s Q&A program in November.

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A member of the audience then compared Mr Morrison to Steven Bradbury.

“I assume you mean he took advantage of a situation that was created by others. Well, I suppose, you know, that is how he’s presented the circumstances himself, and I’m not in a position to contradict that or question that,” Mr Turnbull replied.

He said he had remained largely silent since quitting parliament because he wanted “to give Scott all the clear air to do his own thing”.

“I wish Scott all the best in the election, I really do,” Mr Turnbull insisted.

News.com.au has approached Mr Turnbull for comment on today’s report.