Ron Davies’ Forward Wales party is to disband, the former Welsh Secretary and ex-Caerphilly MP has admitted.
The party’s registration with the Electoral Commission will not be renewed next month.
Speculation is now rife that Mr Davies, who was elected as an independent councillor in May 2008, could join Plaid Cymru, the party he sits with on the cabinet of Caerphilly County Borough Council.
Speaking to BBC Radio Wales, Mr Davies pledged his support for council leader Lindsay Whittle’s seventh attempt to become Caerphilly’s MP.
He said: “I think the membership of political parties is a matter for individuals, isn’t it?
“In terms of my own focus, I will certainly be supporting Plaid in the general election.
“The next assembly election is some way in the future and we’ll see what happens then.
“My own view and that of others was that the Labour Party was sort of falling off the edge of a cliff and people were deserting membership in droves.”
The left-of-centre Forward Wales was founded by another former Labour AM and MP John Marek of Wrexham, in late 2003.
Speaking about why the party was founded Mr Davies said: “If you look at the big issues, the question of a proper parliament for Wales, the question of proper funding for Wales, the question of a proper relationship between Wales and England, the question of a proper industrial and economic policy – none of that has happened.
“I think that, in that sense, if you look at Wales today we’re actually poorer and less well governed than we were ten years ago despite devolution and despite all the European aid that we’ve had over the last decade.”
If Mr Davies did decide to join Plaid it would open up the tantalising prospect of him standing for the Caerphilly constituency in the next Assembly election for Plaid.
At the last election, the votes he got as an independent and the votes Mr Whittle got with Plaid if combined would have been enough to topple Labour AM Jeff Cuthbert.