John Key believes it would be unlikely for the National Party to make any deal with Colin Craig or the Conservative Party for a seat in Parliament following the defamation case against Mr Craig.
"He might have a few more bills to pay first," said Mr Key.
Mr Craig was found guilty of defamation last week and ordered to pay Jordan Williams $1.27m, and just this week it was revealed the Human Rights Tribunal ordered Mr Craig to pay Rachel MacGregor $128,780 earlier this year for breaching a confidential agreement between the two.
Mr Key believes it will be unlikely for Mr Craig to get back into politics because the Conservative Party does not want him.
"It's for him to decide whether he wants to throw his hat in the ring, but he'd probably have to find a political party that would want him in the first instance," he said.
The Prime Minister believes Mr Craig's reputation following the defamation trial against him has also damaged the Conservative Party's reputation.
"He was a really big part of the party, he was the face of the party, one of the few names that people knew and he funded a lot of the party, so you have to believe it's done a fair bit of damage to them," said Mr Key.