With polls continuing to suggest a Tory landslide in the June 8 vote, scores of moderate Labour MPs are reportedly prepared to resign the party whip.
According to the Telegraph, the MPs who resign would stay in Parliament and sit as independents until Mr Corbyn either quits or is removed as party leader.
At that point, the MPs – thought to include shadow Brexit secretary Sir Keri Starmer, Dan Jarvis and former leadership candidate Yvette Cooper – would rejoin the parliamentary Labour party.
During their time as independents they would retain Labour Party membership and a separate party would not be formed, the Telegraph claims.
A spokesman for Mr Corbyn dismissed the report as “another silly story from a Tory paper and anonymous source to distract from Labour’s policies for the many not the few”.
The plans come after Mr Corbyn revealed he would “carry on” as leader even if Labour lose the election.
He told Buzzfeed News: “I was elected leader of this party and I’ll stay leader of this party.”
Top pic: Rex