President of the Malaysian Indian Congress (MIC), G Palanivel said he will discuss the proposal with Prime Minister Najib Razak to get his opinion.
"I will also meet the Registrar of Societies to discuss the issue. A fresh party election is a better solution to the crisis. After all, this is what all sides want," he said.
He said a fresh election will solve the crisis once and for all and MIC members can then concentrate on strengthening the party.
The ugly crisis plaguing the MIC has prompted ruling coalition party Barisan Nasional's chairman Najib and his deputy to step in to solve the issue plaguing its vital coalition partner.
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Barisan deputy chairman Muhyiddin Yassin said they had to meet MIC's top leadership and discuss the next course of action for the party "to protect the image of the coalition".
"With the current situation, it seems that if we do not interfere, things will go out of control. We will meet with them and take the next action within the MIC constitution," he said last week.
The MIC is an ethnic Indian party which is a part of the ruling coalition of Barisan Nasional.
However, MIC has for several years now been blamed for not taking up the problems of the minority community and not doing enough to uplift the ethnic Indian population.