The Federal Government of Australia is playing down reports there is a split in the Labor Party over plans to create a new Indigenous body.

Indigenous Affairs Minister Jenny Macklin has ruled out reviving ATSIC, but is pushing ahead with plans for a replacement body.

Former Labor Party president Warren Mundine is strongly opposed to an ATSIC replacement.

Ms Macklin says she knows there are a range of views and they will all be considered before a final decision is made.

"We intend to go about the creation of this body in a careful way taking into account many different people's points of view," she said.

"Lots of people have very different views about the nature and form and responsibilities that this new body should have."