On Tuesday, Palmer, who owns coal exploration company Waratah Coal, told a Brisbane press conference that Greenpeace, the Greens and other activists, including Hutton, had a plan to inject $6 million into a campaign to try to bring down the Australian coal industry and it was being funded by the CIA.

He said the Greens and Hutton were “tools” of the US government and the anti-coal movement was in fact being funded by an “offshore political power”

He said it was tantamount to treason and called for something to be done about it.

The allegations set off a media storm with political leaders and environmental activists responding to Palmer’s claims.

Hutton, a former Queensland Greens candidate lashed out against Palmer for the remarks and was now considering taking legal action against his claims.

Hutton reportedly told The Australian he had already sought legal advice and had been told his case was solid.

“They told me I have an excellent chance of winning should I mount such a case,” Hutton was quoted as saying.

Hutton said Palmer’s conspiracy claims were defamatory and amounted to treason.

“Treason is a capital offence in many countries,” Hutton said.

“As a proud Australian, I am disgusted by these bizarre and dishonest allegations.”

Meanwhile, Greenpeace campaigner John Hepburn has adamantly denied the allegations.

“Greenpeace does not accept funding from the CIA nor from any other secret service for that matter,” he said.

Hepburn said his campaigns were funded by the many tens of thousands of individuals around Australia.

Foreign Minister Bob Carr reportedly labelled Palmer's comments “recklessly irresponsible”, while opposition leader Tony Abbott was not fazed by Palmer’s latest dig at the Greens.

“He's a larger-than-life character and I think when he says that the Greens want to stop the coal industry he's absolutely right – of course the Greens want to stop the coal industry,” Abbott told Channel 10.

“I don't think they need any CIA influence though to give them that position.”

Greenpeace’s anti-coal campaign, which was revealed in a document titled Stopping the Australian Coal Export Boom, aims to interfere with the coal industry by disrupting and delaying key projects and infrastructure, while simultaneously creating investor uncertainty.

Palmer said the campaign was funded by the US-based Rockefeller Family Fund, which was bankrolled by donations from the descendants of US oil magnate John D Rockefeller.

In response to reports Hutton was mounting a legal challenge, Palmer called for the veteran environmental campaigner to detail how his campaigns were funded.

“The Green movement in Queensland led by Drew Hutton should not be funded by foreign interests,” he said in statement.

“Drew Hutton should explain exactly who funds him and his continual and well organised crusades against mining interests.

“I think a lot of his supporters would be disappointed to see that he is connected with foreign interests, namely the Rockefeller Foundation.”

Palmer is calling on Hutton to explain the link to the Rockefeller funds to the people of Queensland who are voting in a state election on Saturday.

Palmer was unable to respond to ILN’ request for comment.