Tensions have erupted in the Victorian Liberal Party over a controversial threat to preference the Greens in a number of federal Labor-held seats.

With only weeks to go before a potential double-dissolution election, Victorian president Michael Kroger faces internal unrest after suggesting the Liberals could form a "loose arrangement" with the Greens by putting the minor party ahead of the ALP in key inner-city electorates, such as Wills and Batman.

State Liberal president, Michael Kroger, has been outspoken in his criticism of the BCA. Credit:Craig Sillitoe

The outspoken powerbroker reiterated his case for shift in strategy last week, when he told a gathering of Liberal members that unless the party reconsidered how it directed its preferences, it could struggle to improve its federal vote in Victoria.

Making his case in a speech to the rank-and-file, Mr Kroger argued that in 12 out of the last 13 elections, the Liberals' two-party preferred vote had been below the national average by at least 2 per cent – and "more alarmingly, it's getting worse."