The Nationals have reportedly been told by the prime minister to go back to the drawing board on a plan to introduce new farm labour visas.
Scott Morrison told the Agriculture Minister David Littleproud in cabinet last week that the plan - aimed at addressing farming skill shortages - could not be delivered, The Australian reports.
Mr Littleproud was given three weeks to develop a fresh policy that would not threaten Australian jobs, open new opportunities for immigration rorts or concern regional partners.
Foreign Minister Senator Marise Payne reportedly suggested current regional labour mobility agreements underpin Australia's efforts to deal with Chinese influence in the Pacific, and would be put at risk by the plan.
Asked about the exchange, Finance Minister Mathias Cormann said he didn't want to "get into cabinet deliberations".
But he emphasised the government is keen to maintain strong international relationships and that current arrangements are popular.
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"We always are mindful to make sure that we have the best possible relationship with our Pacific neighbours and indeed, that particular program is very popular," he told Sky News.
"But by the same token, also very conscious of the fact that there is a need across the agricultural sector for more workers."
Australian Associated Press