The Liberal Party will formally oppose enshrining an Indigenous voice in the constitution, but will back constitutional recognition.
Opposition Leader Peter Dutton summoned MPs to Canberra for a meeting on Wednesday to discuss a position on the voice.
After a two-hour meeting, the party agreed to support constitutional recognition of Indigenous people, but not a constitutionally enshrined voice to the parliament and executive government.
Mr Dutton said the Liberal Party did not support "the prime minister's Canberra voice", but rather wanted a legislated local and regional voice mechanism.
"We want to make sure that we can get the best possible outcomes for Indigenous Australians," he told reporters in Canberra.
"We do that through recognising Indigenous Australians in the constitution and by providing for their say, their voice to be heard by government, in a very clear way but at a local level."
Mr Dutton confirmed he will actively campaign for the 'no' campaign in the lead-up to the referendum.
But he said he would not tolerate derogatory comments about Indigenous Australians from members of his party during the debate.
"Creating another national body out of Canberra, as the prime minister is proposing, divides our country. It doesn't unite and it's not going to deliver the outcomes on the ground," he said.
"What we're saying ... is that we want to hear a better way for Indigenous Australians who are in the most dire of circumstances."
The opposition will propose amendments to the model introduced to parliament by the government at the end of March.
The model was based on recommendations from the referendum working group which provides advice on the voice.
While Liberal backbenchers are free to vote with the government on the legislation, the shadow cabinet is bound by the party position not to support the model.
At least four Liberal backbenchers will campaign for a 'yes' vote, including Tasmania's Bridget Archer.
Prime Minister Anthony Albanese earlier said calls from the Liberal Party to delay a referendum on an Indigenous voice were absurd.
"This is a nation-building effort and I call upon everyone to support it," Mr Albanese told reporters in Canberra.
"This is not controversial and should not be an issue of partisan politics. It's a modest proposal.
"The idea that you can simply ignore or dismiss the views of the referendum working group in my view contradicts the very concept of a voice which is about listening."
Before the meeting, former Morrison government minister Ken Wyatt warned his ex-colleagues a decision not to support the voice could come back to bite the Liberal Party.
"Parties that are out of touch will pay the consequence in the future," he told ABC Radio National on Wednesday.
Mr Wyatt, a member of the referendum working group, said the voice proposal was not new and had been the subject of multiple reports considered by consecutive prime ministers.
"People who argue contrary to that shows they did not give scant attention to even the executive summary of those reports," he said.
A Newspoll conducted for The Australian and reported on Tuesday night showed 54 per cent of all voters support constitutional recognition and the voice to parliament, with 38 per cent opposed.
The poll signalled the likelihood that a referendum would meet the critical double majority test to succeed if one were held today.
© AAP 2023