Disgruntled Northern Territory backbencher Alison Anderson has labelled the Country Liberals (CLP) Government as "racist", after she was suspended from the parliamentary wing of the party.

Three of the Government's Indigenous members - Ms Anderson, Larisa Lee and Francis Xavier - had presented Chief Minister Adam Giles with a list of demands and on Thursday walked out of Parliament.

Mr Giles on Friday announced Ms Anderson, the Member for Namatjira, would be suspended and accused her of leading a rebellion within the Government.

Ms Anderson has told ABC News Radio she has been an MLA with the Labor Party too, but the Country Liberals have treated her worse.

"I've never seen anything like it. Like I said, I've been with Heckle and I've been with Jeckle. And I think we've always been sort of safe with Labor," she said.

"They've got that social conscience and they want to do things for Aboriginal people, but if ever I've met a racist group of people, I've met them in the Country Liberal Party."

Ms Anderson will now have to sit on the cross benches, and it is possible a meeting of the CLP executive may move to expel her from the party.

But Ms Anderson's rebel colleagues say they will stand by her and will walk out on the CLP if she is expelled.

Space to play or pause, M to mute, left and right arrows to seek, up and down arrows for volume. Listen Duration: 3 minutes 34 seconds 3 m 34 s Listen to Will Ockenden's report for PM Download 1.6 MB

Ms Lee has told the ABC's 7.30 NT program she remained united with Ms Anderson.

"Since the Chief Minister has come out and said Alison is suspended from attending wing meetings, I myself, Larisa Lee, and Francis Xavier will not attend the wing meetings," she said.

"As a block, as a three, we came in together, we will leave together."

Mr Xavier says he will stand with his fellow bush members, despite what he says are threats being made by Mr Giles.

"As far as I'm concerned there's been a threat by the Chief Minister, and the meeting went well yesterday and we thought we had all in good faith, but the Chief Minister started to threaten me and pulling the ferry away from us and he start to threaten the Tiwi people," he said.

Giles will not 'be held to ransom'

The CLP lurched into crisis on Thursday when the three disgruntled bush MLAs walked out of Parliament.

Mr Giles said talks between himself and the three MLAs had broken down because the CLP was "being asked to govern with a gun to our heads".

"I will not allow the Northern Territory to be held to ransom by one particular member of Parliament," Mr Giles said.

"To that vein, this afternoon I have tried to make contact with the Member for Namatjira, Alison Anderson, to advise that she will now be suspended from the parliamentary wing until further notice."

On Thursday, before the walkout by the three members, Mr Giles told media he was not looking to expel anyone.

But on Friday he said the list of demands had gone too far and he would not be held to ransom.

"It has got to a point when it is simply a joke," he said.

"Alison Anderson and others, I believe, have a gun to our head. Not just the Government's head, but the Territory's head, and it's just not good enough and I won't tolerate it."

The ABC understands the list of demands included creating a new Aboriginal affairs department and making Ms Anderson the minister for Aboriginal affairs.

Former chief executive of the Northern Land Council Norman Fry was to be her chief of staff, according to the demands.

Ms Lee wanted to be made minister for youth, sport and recreation, parks and wildlife, and women's affairs.

Mr Xavier wanted to be a parliamentary secretary.

The rebel MLAs also demanded CLP colleagues Matt Conlan and Bess Price be dumped from Cabinet.

They pushed for firm budget allocations for bush electorates.

Advisers to rebel MLAs sacked

The saga has thrown the NT Government into crisis in the lead-up to a vital by-election next month in the seat being vacated by former chief minister Terry Mills.

If the CLP lose that election and the three disgruntled members go to the cross benches, Mr Giles will be forced to govern in minority and will need the support of independent Gerry Wood.

There were signs something was in the works earlier on Friday when two advisers to the three rebel backbenchers were sacked.

The CLP had originally hired Norman Fry and Don Fuller to manage their bush MLAs, but Mr Giles has confirmed they have now gone.

"I made a decision that neither of those two people were operating in the best interests of myself, of government or of the Northern Territory," he said.

"I think there were operations and actions that were taken and activities that were put into play that were working against government and I won't tolerate that either."

The Government says Ms Lee and Mr Xavier will be welcomed back into the fold if they wish.

Labor says Mr Giles has lost the confidence of the bush and must resign.

"Adam Giles is kidding himself if he thinks expelling Alison Anderson just from his party wing meetings resolves the crisis that the Territory Government is now in," Opposition Leader Delia Lawrie said.

"It's a bizarre situation where a chief minister thinks that three of his own members walking out on him in Parliament, refusing to support their legislation and clearly not supporting his leadership on national TV, saying they will have more to say on that - it's incredible when a chief minister doesn't accept the gravity of that, thinks it's just one person being sin-binned from party wing meetings [that] is going to fix that."

It will be Ms Anderson's second spell on the cross benches.