The Outdoors and Freedom Party says Brian Tamaki "jumped the gun" when he announced its inclusion in an umbrella political party called Freedoms NZ.
At an anti-Government protest in Wellington on Tuesday, Freedom and Rights Coalition founder Tamaki declared a merger between the New Nation, Vision NZ and Outdoors & Freedom Party (Outdoors Party).
Tamaki said the Outdoors Party had given him the "thumbs up" in joining the coalition, but now the party has clarified they have not come to a consensus yet.
"We have created this and I've got together and I've been working hard with some good people and we've now established an umbrella party called Freedoms New Zealand," Tamaki said at the protest outside Parliament. "It's about to be registered with the Electoral Commission."
"We now have three parties, three good parties that have made a commitment. Two are here today, one is in London.
"Two have signed a memorandum of agreement that totally committed. The third one is just finally getting the sign-off and approval from their people, their board, but they have given the thumbs up.
"So that's three good parties that have already committed in uniting to fight for what is right.
"The first one is the New Nation Party, the second one is Vision NZ [and] the third one is the Outdoors and Freedom Party… The team are still getting the final things together but we are quite certain it's a sign off."
Tamaki also said he is not personally standing himself and that there are two more parties interested in joining the coalition.
However, the Outdoors Party has hit back, setting the record straight.
"Outdoors & Freedom Party would like to clarify. Brian Tamaki has jumped the gun re declaring us in his umbrella party," the party said in a statement on Facebook.
"As a party, we have been doing our own work behind the scenes and have requested time to discuss the issues together as a party and come to a consensus as to the way forward. We emailed him last week telling him this.
"It was inappropriate for him to do what he did today, saying that Outdoors & Freedom Party was going under his umbrella."
It was unclear which member of the Outdoors Party wrote the post.
But Tamaki claimed in a comment on the post that he did have permission from two of the party's members.
He said they were happy for him to announce it and that the party co-leader Sue Grey "wants in".
Tamaki also made clear that he said the party was still working through a process with their members to get on board with the merger.
The Outdoors Party has posted another statement which said they need a coalition but are considering "all options".
"Yes we need coalition, we've been saying that and attempting it for years now. But it has to be the right thing otherwise it will turn to custard and it will be all over our faces."
The comments come after right-leaning political commentator Matthew Hooton said Labour and The National Party shouldn't rule out a grand coalition to keep extremist fringe parties out of power as they gain public support.
The fringe parties would need five percent of the party vote to get into Parliament.
Newshub has contacted the Outdoors and Freedom Party and Brian Tamaki's Freedom and Rights Coalition for further comment.