Federal Labor leader Anthony Albanese had denied his non-attendance at this weekend's state ALP conference in Victoria was sparked by threats of a unions walkout.
Mr Albanese was expected to give a keynote speech, which is usually delivered by a senior federal Labor MP, to the gathering on Sunday in Melbourne.
His decision not to attend driven by the planned walkout by union members angry at the federal party, The Australian reported on Friday citing unnamed union and Labor party sources.
But Mr Albanese's office says otherwise.
"Mr Albanese is not attending this conference, a decision that was made several months ago," a spokesman said.
"He looks forward to attending next year's conference."
Australian Associated Press