Prime Minister Julia Gillard has suffered another blow in the opinion polls.

Already under fire over refugee processing and carbon tax, a resurgence of popularity for Kevin Rudd is only adding to her to woes.

Rebecca Oakley reports.

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Cabinet and caucus met again this morning to work out a policy for refugees arriving by boat.

Julia Gillard made it clear her Malaysia proposal is still on the table, today’s meeting agreed to attempt to overturn the High Court’s rejection of the plan.

But the Opposition is keeping up its pressure on the Government.

Scott Morrison, Shadow Immigration Minister: “Nauru is proven, Malaysia is a proven failure proven failure.”

No good news for the Prime Minister either, from the latest opinion polls.

Support for her leadership is down to 19 per cent, while Kevin Rudd has soared into 44 per cent as preferred leader.

The results again fuelling speculation of Rudd’s return to the top.

If an election was held now, the coalition would claim a crushing victory over Labor, with Rudd back in the saddle, the poll suggests the Government could win 52 per cent of the vote.

Some Labor MPs remain steadfastly behind the Gillard leadership.

Nick Champion, SA Labor MP: “We’ve got a leader as hard as nails and she’s getting on with the job getting on with the job.”

Gillard faces more heated debate tomorrow in Parliament, as she introduces her Carbon Tax Plan.

Rebecca Oakley, QUT News.