Dover MP Charlie Elphicke is understood to be planning to take the Conservative Party to court after claims that he sexually assaulted women went public.
Party chiefs suspended Mr Elphicke and withdrew the Conservative whip after allegations surfaced that he had touched a woman’s breasts and “lunged” at another woman in a lift.
The 47-year-old has consistently denied the allegations while his wife Natalie has fully supported him and insisted that he is the victim of a “kangaroo court”.
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On the day of his suspension in November, Mr Elphicke tweeted: “I am not aware of what the alleged claims are and deny any wrongdoing.”
Last month, Scotland Yard confirmed that it had interviewed Mr Elphicke, who has represented Dover and Deal, since the 2010 general election, in relation to the claims.
The Conservative Party has said it had no choice but to suspend Mr Elphicke, a solicitor.
But friends this weekend have said that Mr Elphicke is planning court action against the party on the basis that it had breached his human right to privacy by airing the allegations against him.
Sir Cliff Richard is using the same rules to fight the BBC which broadcast a raid on his home by police investigating historic sex assault claims made against him.
No charges were ever brought against the pop star despite a two-year investigation.
Mr Elphicke is understood to have secured the services of a leading libel lawyer who will act for him on a no win, no fee basis.
Neither Mr Elphicke nor Downing Street has commented.
If Mr Elphicke stands at the next general election, his closest challenger is likely to be the Labour Party candidate Charlotte Cornell, who is the chief of staff to Canterbury and Whitstable MP Rosie Duffield.