The Australian Conservatives party, represented in the Senate by Cory Bernardi, will amalgamate with the Family First Party, the ABC understands.

Key points: Family First to be wound up and resources transferred to Australian Conservatives

Family First to be wound up and resources transferred to Australian Conservatives Newly elected senator Lucy Gichuhi will not be part of merged party

Newly elected senator Lucy Gichuhi will not be part of merged party Peter Dutton calls amalgamation "inevitable" after departure of Bob Day

Family First has two representatives in the South Australian Parliament who will become Australian Conservatives instead.

But the ABC understands newly elected federal Family First senator Lucy Gichuhi will not be part of the merged party and is expected to issue a statement about the developments today.

Senator Gichuhi, who was confirmed just last week by the High Court as the Family First senator for South Australia to replace Bob Day, highlighted her allegiance to Family First.

"Family First is a party that shares my values and my hope for Australia and I am proud to be a member of that team," she told reporters in Adelaide.

The decision to amalgamate the two parties means a significant consolidation of the conservative movement nationally.

It is understood to have been ratified by executives from Family First, who have resolved not to keep the party going at state or federal level and to instead join with Senator Bernardi's new party.

When Family First is wound up, the party's resources will go to the Australian Conservatives.

Senator Bernardi is the leader of the Australian Conservatives and its sole representative in federal parliament.

In South Australia, Dennis Hood and Robert Brokenshire, who are both members of the State Upper House, will switch from Family First to representing the Australian Conservatives.

Family First founder Pastor Andrew Evans said he supported the merger.

"It's just crazy to divide all the time, so we felt let's [get] the conservatives [to] unite and make an impact and let them know our values and see if we can have some impact across the nation," he said.

He said every effort had been made to get Senator Gichuhi to be part of the political shift.

"We've given her every opportunity," he said.

"We'd love to have her on board, I don't know why she doesn't want to come with us.

"I explained to her, 'Lucy, if you come with us you will probably have a long-term future but if you go independent it'll probably be one term."

Merger was 'inevitable', Dutton says

Immigration Minister Peter Dutton said the amalgamation was a natural fit.

"My sense is that it was inevitable," he told Sky News.

"[Bob Day] was really the father of Family First and obviously had strongly financially backed Family First and when he exited it really was the case that the writing was on the wall."

Mr Day's election to the Senate at last year's poll was ruled invalid by the High Court after it was found a property he owned had been leased to the Commonwealth, contrary to law.

Mr Dutton said the merged group would mainly have influence in South Australia, comparing it to One Nation's strength in Queensland.

"You're seeing most of these movements contained within state boundaries," he said.

He said the Government would continue to work with crossbenchers regardless of their party allegiances.

Federal Liberal backbencher Andrew Hastie, who says he considers Senator Bernardi a friend, noted on Sky that the fledgling party is attracting followers.

"Well, does Cory's ambition have any limits is my first question," Mr Hastie said.

"It will definitely put meat on the bones which is the Australian Conservatives."

Family First only just won a seat at the double dissolution election with 2.8 per cent of the vote — so the amalgamated party will still have a challenge to make more electoral gains.

When Senator Bernardi quit the Liberals, he told Parliament he hoped his new party would grow.

"The journey ahead will not be for the faint of heart, but worthwhile ventures rarely are," he said.

"Every journey begins with a first step. Today I take that first step, knowing the direction in which I will be heading, and I hope that those who are truly concerned for the future of our nation will choose to join me."