Senior Labor sources say moves are underway to replace Julia Gillard with Kevin Rudd.

The former leader, who was himself dumped by the ALP for Ms Gillard, has emerged as a front-runner in a looming leadership battle.

It follows the governments disasterous handling of the Asylum-Seeker issue, which saw the High-Court dump it's Malaysia swap-deal.

Concern has also been expressed at the Prime Ministers decision to attack the High-Court ruling.