The Liberal Party has received advice from the Greek Embassy that federal MP Julia Banks has never held Greek citizenship, easing fears she could be disqualified from her marginal seat.

Some in the party raised concerns the Government's one-seat majority could be tested with a by-election if she was found to have breached the constitution.

"We have received confirmation from the Greek Embassy that according to records Julia Banks is not registered as a Greek citizen and also is not entitled as a Greek citizen," a Liberal Party spokesman told the ABC.

Ms Banks was born in Australia, as was her mother, but her father was born in Greece.

She told the ABC on Friday she had never taken up Greek citizenship.

"I was born here. So was my mum. My dad was born in Greece and became an Australian citizen also before I was born," she said.

"So I was born an Australian citizen in Australia to parents who were both Australian citizens."

She holds the marginal seat of Chisolm in outer Melbourne by just 1.2 per cent.

Her father Sofoulis Phillip Lolatgis came to Australia as a 15-year-old in 1949, and he has since died.

In her first speech to Parliament, Ms Banks described imagining her proud father "doing a Greek dance with those robust, jubilant and warm Mediterranean characteristics, which I used to find embarrassing as a child".