Sang Anakhot Thai Party (SATP) is said to have turned to the Chartpattanakla Party to discuss forming a political alliance after it failed to reach a deal with Thai Sang Thai.
SATP secretary-general Sontirat Sontijirawong said the party is adjusting its strategy following changes to the election rules, which are widely seen as benefiting large parties at the expense of small ones that had set their sights on party-list seats.
Addressing speculation about a possible merger, Mr Sontirat said there has been progress in talks about forging partnerships with other parties and that the SATP was expected to announce some "good news" soon.
Mr Sontirat did not name the parties, but it is believed that one of them is the Chartpattanakla Party led by Korn Chatikavanij, itself the result of a merger between the Chart Pattana and Kla parties.
At one point, the SATP was said to be negotiating with the Thai Sang Thai Party led by Khunying Sudarat Keyuraphan over a possible merger. But both parties failed to reach agreement on key positions.
If talks with the Chartpattanakla Party also fail, the SATP is considering letting key members join other parties.
Some party heavyweights may consider taking a break, while some potential candidates may move to the Bhumjaithai Party, according to a source.
The SATP was established early this year with Uttama Savanayana, former leader of the Palang Pracharath Party (PPRP), as its leader.
It recently announced it would name party chairman Somkid Jatusripitak as one of its prime ministerial candidates for the upcoming polls.
Mr Sontirat insisted yesterday the SATP remains united and will carry on after the departure of some party members, including Nipit Intarasombat, who quit as a party deputy leader and joined the PPRP this week.