Federal MP and mining billionaire Clive Palmer has served defamation papers on Queensland's Premier, over his claims that Mr Palmer is trying to “buy” government.

Mr Palmer is suing Mr Newman for defamation charges of more than $1.1 million, over statements the Palmer United Party leader says were “totally false and damaging to his integrity”.

Palmer says Newman falsely accused him of trying to “buy” the LNP State Government. He alleges that the Premier implied he had offered incentives to Northern Territory MPs to join the PUP.

Mr Palmer alleges Mr Newman said: “This is a guy who tried to buy a government, my government.”

“We said, 'we are not for sale'. As a result, he has gone on a rampage around Australia, trying to buy other people and buy people's votes,” the writ quotes Mr Newman as saying.

“I ask, what inducements were offered to these three MPs? What cash? What jobs? What financial support for elections? What offers were made for them to jump ship?”

Mr Palmer has issued a statement saying if damages are awarded, they will be donated to Mission Australia “to assist the charity with its work to help sacked Queensland public servants”.

“These comments by Mr Newman can't be allowed to go unchallenged,” he said.