Colin Craig has stood down as leader of the Conservative Party.

Colin Craig has resigned as Conservative Party leader and will "facilitate" a vote for a new leader.

Craig's position as leader has been in doubt for months, but his grip loosened further on Thursday night when it emerged a faction within the party's board was prepared to roll him at a meeting on Friday night.

Craig confirmed to media on Friday that the meeting had been postponed.

DAVID WHITE/FAIRFAX NZ Conserative Party leader Colin Craig was hanging on to his leadership by a thread.

Craig said he would "forgive the balance of any outstanding loans" owed to him by the party, as its major financial backer.

Party chairman Brian Dobbs said Craig had performed well, and confirmed Craig would stay on as a member of the party if his leadership did not survive a vote.

"I do want to acknowledge and publicly thank Colin. He's shown outstanding commitment in advancing the cause of conservatism in New Zealand."

DAVID WHITE/FAIRFAX NZ Conserative Party leader Colin Craig has held a press conference to outline the process by which the board will vote on the party's leadership.

READ MORE: Colin Craig's wild political ride

Craig said rumours about the purpose of Friday's board meeting had ranged from "the intriguing to the ridiculous."

Some board members felt it was time to have a leadership discussion.

DAVID WHITE/FAIRFAX NZ Colin Craig says he's aware of "differences of opinion" over his media appearances.

Craig said he supported the call for a review.

"The party is now over three years old ... this point in the election cycle is the correct time to consider the leadership."

It is understood at least three board members had phoned Sensible Sentencing Trust (SST) chief executive Garth McVicar in the past week, asking him to take the job.

Craig had earlier said he would like to stay on as leader, but that it would be put to a vote.

"The answer to that is always the same response; it's up to the board," he said.

"What I will say, is there are some board members who definitely want a discussion over the leadership of the party."

Craig acknowledged he did not have the support of all board members, partly stemming from some of his appearances in the media.

"Everyone has an opinion, and I think there are always differences in opinion. I think I have acknowledged some of the interview situations are significant, there is a difference of opinion over things like sauna interviews and whether that makes good media."

Most recently, Craig appeared in an interview conducted in a sauna by TV3's Newsworthy. He also posed for a now-famous photo shoot with Fairfax Media, posing reclined in long grass. In an interview ahead of the 2014 Election, Craig refused to rule out the existence of chemtrails and questioned whether the 1969 moon landing occurred.

And he found himself embroiled in controversy over the sudden resignation of his press secretary, Rachel MacGregor, just days before the election.

Craig said he had met with MacGregor earlier this year, and the pair had "settled their differences".

Asked if that included a cash settlement, he said all outstanding finances had been settled.

On his leadership, Craig said it was appropriate a vote occurred, but not in an underhanded way. His comment comes after reports that the opposing faction believed it had a majority to roll him.

"I think the reality is I've been leader for over three years now. I think it's not inappropriate for our board to have a good discussion over the leadership.

"But the approach we take at the Conservative Party is a measured one. There will not be a leadership vote at the meeting tonight, that is definite.

Craig has donated more than $4 million to the party he founded. He is the only major donor apart from Waikato businessman Laurence Day.