Four Liberal Democrat and three Conservative councillors on troubled Argyll and Bute Council have notified the local authority of their plans to quit their parties.
The move revealed by email saw the seven councillors join forces with three independents to form The Argyll, Lomond and the Islands Group. It comes as rival factions fight to take control of the council.
The SNP intends to put forward its own proposal for a new single leader and a source said it would work with the disaffected LibDems and Conservatives.
But The Alliance of Independent Councillors will propose a three-member leadership team.
Former council leader James Robb quit the top post 10 days ago after his SNP group was temporarily suspended, by the party's National Executive Committee, for inviting the LibDem and Conservative groups to join the ruling coalition without permission.
SNP Councillor Roddy McCuish, from Oban, confirmed: "We will be putting forward a new SNP candidate for council leader on Thursday."
Councillor McCuish revealed he has resigned from his position as SNP group leader, and added: "I was loyal to the former leader of the council so I am moving on to other things. Councillor Sandy Taylor is the new leader of the SNP group."
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