Former prime minister Dr Mahathir Mohamad has to form a new party because the opposition considers him a liability, said an Umno minister.

"The fact he has to form a new party shows the other (opposition) parties won't accept him because he's a liability," Tourism and Culture Minister Nazri Abdul Aziz said.

One of Mahathir's lieutenants, Khairuddin Abu Hassan yesterday revealed that there are plans to form a new party that might be spearheaded by the former premier.