Victorian Liberal leader John Pesutto is preparing to permanently expel the controversial and suspended MP Moira Deeming to see off the potential for federal intervention by Opposition Leader Peter Dutton in a move that could threaten his leadership and split the party.

Brighton MP James Newbury and former opposition leader Matthew Guy called out “terrorists” for blowing up the party on Thursday, after claims upper house MP Renee Heath was bullied by Mr Pesutto at a party room meeting on Tuesday in relation to the Deeming saga.