The premier on Friday stared down the Nationals leader who backed away from threats to move his party to the cross bench because of a rift over the state's koala protection policy, made less than 24 hours earlier.

Ms Berejiklian had issued Mr Barilaro an ultimatum to declare support for the coalition or be sacked from the cabinet.

The premier confirmed on Sunday that everything was ready for her to attend Government House and swear in a new ministry if required.

"We made arrangements and if I needed to take that course, I would have - I want to make that very clear," she told reporters on Sunday.

Mr Barilaro's position as deputy premier and Nationals leader has been in question since the chaotic dispute, with Police Minister David Elliott describing it as "untenable".

The premier wouldn't be drawn on whether Mr Barilaro should remain leader or not - insisting the matter is one for the Nationals.

"Whoever leads the Nationals is a matter for the National Party - that's always been the case," she said.

"My job is to protect the cabinet process which is why I took the action I did last week."

NSW Transport Minister Andrew Constance admitted to being "hurt" by Mr Barilaro's actions and words last week and that his role as deputy is a matter for his conscience.

"The most alarming thing I heard from the deputy premier is that we have a country-city divide in this state," Mr Constance told reporters.

"I am pretty hurt by what has been said - you don't do that with your coalition partner.

"Leadership is not what we saw on display last week."

Mr Barilaro backed down from the threats in a crisis meeting with the premier on Friday morning with a joint statement later confirming the coalition remained in place and the Nationals' concerns over the koala policy would be dealt with at an upcoming cabinet meeting.

The Nationals leader blindsided Ms Berejiklian on Thursday by announcing his MPs would abstain from voting on coalition bills and would be "effectively on the cross bench" as they fought changes to the protection plan.

The Nationals are concerned changes to the Koala Habitat Protection State Environmental Planning Policy limits land use on farms and the ability to rezone areas for development as more trees are classed as koala habitat.

Mr Elliott hit out at his coalition colleague over the stoush.

"The disloyalty that we've seen out of the deputy premier makes his position untenable," he said on Friday.

NSW Labor leader Jodi McKay called Mr Barlaro's backflip "humiliating", and also said his position was "completely untenable".

Australian Associated Press