Minister for Health Mary Harney intends to put a motion to the Progressive Democrats national executive to allow the party to choose a leader from outside the Dáil.
In a lengthy interview with RTÉ Radio today, Ms Harney said she agreed to be interim leader after former leader Michael McDowell lost his seat in Dublin South East in last month's general election.
However, she said she has no wish to stay on in the role that she vacated last summer and the PDs' only other Dáil deputy, Galway West TD Noel Grealish, "certainly doesn't want to lead the party".
Having a party leader from outside parliament was not unusual in other European countries, she said.
Ms Harney said she will call for a rule change at Thursday's national executive meeting in Dublin. The PDs general council meets on Sunday.
Former minister of state and IFA leader Tom Parlon, who also lost his Dáil seat in the election, is expected to be the front-runner in the race for the party leadership.
Ms Harney rejected a suggestion that it was a mistake to step down as PD leader last year and denied that the party's poor performance in the election, when it lost six of its eight seats, was attributable to the leadership of Mr McDowell.
She said smaller parties and independents fared badly due to polarisation of the campaign. People wanting change opted for Fine Gael and those wanting to maintain the status quo voted for Fianna Fáil. "The smaller parties missed out in that," she said.
Ms Harney said her party's "Left Wing Government? No Thanks" poster campaign may have backfired because it convinced people to vote for Fianna Fáil instead of the PDs.
"It's not as simple as saying it was about the leadership. Michael McDowell did a brilliant job," she said. It would be "arrogant" of her to suggest the party would have fared better had she been leader.
Ms Harney argued that the PDs could have done better in the vote if they had a "more formalised arrangement" with Fianna Fáil on transfers. She conceded that Mr McDowell's demands for answers from Mr Ahern over his finances may have resulted in Fianna Fáil voters refusing to give her party transfers, but insisted it was the right option.
"But the reality is the issue arose. You could bury your head in the sand and pretend it wasn't there or you could do something about it."
As to negotiations over the formation of the Government, Ms Harney said she had a "long meeting" with Enda Kenny before deciding to resume coalition with Fianna Fáil.
Ms Harney insisted she was "very happy" with the Programme for Government. "Although the Progressive Democrats are in a much more weakened state, I think we can play our part in the Government of this country in delivering change, particularly in the area of health."
She also commended the Green Party for putting environmental issues on the agenda. "I think they will make a very good addition to the Government and I am look forward to working with them," she said.
However, Ms Harney denied reports that the Taoiseach had offered her the post of Minister for Foreign Affairs in exchange for stepping down at the Department of Health as a concession to the Green Party.