The Australian Labor party could be could be left with only 30 seats after the next federal election as it heads towards disaster.

That’s view Australian ambassador to the US Kim Beazley gave during a series of high-powered meetings in Washington recently.

Australian media is reporting Beazley to be “highly pessimistic” of his former party’s future and is believed to have told US officials another leadership change was unlikely to make a difference.

Daily Telegraph sources inside the session revealed that Beazley told the group, which included members of Julia Gillard’s government, it was possible Labor could end up with only 30 seats in the 150-seat parliament.

The sources also defended Beazley, claiming he stayed within the boundaries of his roles as an ambassador and did inappropriate comments.

Beazley last night said: "As an ambassador, I don't comment on Australian politics.

"What is said at the dialogue stays at the dialogue.''

The forum was established almost 20 years ago and gives political and industry leaders from both countries the opportunity to meet privately and exchange views about their respective political and economic situations.

However, another Daily Telegraph source said it was a “gross oversimplification” to claim Beazley had written the Gillard government off and that he was simply providing an overview.