CLIVE Palmer and Bob Katter have negotiated a preference agreement between their two fledgling parties.
Katter's Australian Party and Palmer United Party will both exchange preferences above the major parties in the lower house at the federal election.
"The agreement has been reached in the spirit that all parties must work together on preference outcomes to deliver the best outcomes for Australian voters," a KAP statement reads.
"The two parties are pitted in a 'David and Goliath' battle against the major parties who believe they are born to rule."
Both parties will negotiate independently over Senate preferences.
The election will be held on September 7.
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