Queensland's Liberal National Party (LNP) has asked mining magnate Clive Palmer to consider quitting the party.

Mr Palmer is one of the LNP's biggest financial backers but he has criticised the Government's recent job cuts and decision to increase coal royalties.

Acting LNP president Gary Spence says it is clear Mr Palmer has a number of significant policy differences with the Government and the party cannot allow such a public conflict to continue.

In a statement, Mr Spence says Mr Palmer must decide between his position as a head of industry and his membership of the LNP.

"There are strong personalities and strong views being expressed, however our party constitution is clear on issues such as these," he said in the statement.

"Nobody on either side of this issue has the right to bring the interests of the organisational wing of the party into a public conflict.

"It is with a degree of sadness that we find ourselves in this position.

"However, our duty to the LNP is clearly set out in the party's constitution, which has to be applied without favour or affection."

The LNP says it will not make any further comment on the matter.

Mr Palmer says he will consider his membership position over the weekend, but already Katter's Australian Party president Max Menzel says he plans to meet Mr Palmer to discuss common interests and the future of Australia.

Mr Menzel says Mr Palmer talks a lot of sense and would be allowed to speak his mind if he joined Bob Katter's organisation.

"I think he's a good Australian and he should be listened to because he has made a success of his life financially, and I believe that we could gain a lot in Australia by taking a bit of notice of Clive Palmer," he said.

Outspoken

The mining magnate has made outspoken comments about the State Government this week.

Mr Palmer said support for Queensland Premier Campbell Newman is falling rapidly due to public service cuts.

"I'd be very surprised that if sticks with this policy he'll be Premier by Christmas to be honest with you," Mr Palmer said.

"He can't destroy the state and have people who care about the community - I know his backbenchers all care about the community."

Mr Palmer also lashed out at the first LNP state budget, saying any increases in coal royalties will "kill" the state's economy.

"Increased mining royalties on top of widespread sackings is hardly a recipe for growth in this state," he said.

"It is a recipe for disaster putting us on an uneven footing with the rest of the world."

State Opposition Leader Annastacia Palaszczuk says Mr Palmer has a lot of support.

"Clive Palmer is saying a lot of things out there which a lot of people would agree with in relation to the jobs and the cuts that are happening across the public service, right across Queensland, and it's up to the LNP to make their decisions," she said.