In a move that would potentially diminish the power and influence of Mr Abbott's chief of staff Peta Credlin, Mr Nutt would serve in a role that would give him responsibility for improving relations with the backbench.

The vast majority of the 39 MPs who voted for a spill motion in February were backbenchers and Mr Nutt's move would be designed to ensure, in part, that a second spill motion is not brought against Mr Abbott.

Mr Nutt was drafted in as director of the NSW branch of the Liberal Party in April last year after helping oversee Mr Abbott's transition to government in September 2013.

A final decision has not been taken on whether Mr Nutt will return to the Prime Minister's office but Fairfax Media has confirmed with multiple sources that discussions about the move have taken place at the highest levels of government.

It is unclear what title Mr Nutt would be given but many in government expect he would perform the same job he performed for former prime minister John Howard - that of principal private secretary and political "fixer".

Such a move would not necessitate Ms Credlin leaving the Prime Minister's office - as some have urged - but would be seen as an attempt to address perceptions that power is too centralised.

At the same time, Ms Credlin - who has kept a low profile since the failed spill motion amid concerns about her iron grip on decision making processes within government - has in recent weeks been engaged in a charm offensive that has seen her reaching out to MPs to listen to their policy concerns.

One MP who had a visit from Ms Credlin said that in the first 18 months of government, MPs' concerns had largely been ignored by the Prime Minister's office and that as a result "policy concerns have turned into grievances because people were treated with contempt".

The appointment of Mr Nutt, said the MP who is one of many MPs aware discussions are under way, would provide a "second conduit to the boss [Mr Abbott]".

A second MP, who was also aware of the discussions, said relations between the backbench and Ms Credlin had improved in the weeks since the spill and that "it's easier to get things in to the PMO now", but added that Mr Nutt's return would be broadly welcomed.

And a veteran from the Howard government said the 39 MPs who voted for a spill were the "gap in the armory" for Mr Abbott.

"In the previous regime [the Howard government] it was understood you got your job because of the MPs who elected you, so they were treated with respect. That was drummed into everyone," the source said, adding that veteran MPs had been bemused by how that lesson had been forgotten.

Mr Nutt is said to be renting a residence in Potts Point and is widely expected to leave NSW after Mike Baird faces voters in Saturday's election.

He has previously served as the Liberal Party state director of the Victorian, South Australian and West Australian branches, as principal private secretary and then chief of staff to former prime minister John Howard and as chief of staff to former Victorian premier Ted Baillieu.

A spokesman for Mr Abbott declined to comment.

Mr Nutt has been contacted for comment.

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