Mining magnate Clive Palmer says his alliance with the Australian Motoring Enthusiast Party will bring stability to federal parliament.

Mr Palmer announced on Thursday the Palmer United Party had signed a memorandum of understanding with the micro-party which would see the two voting together in the Senate.

"We're one team of people working together because we've got common policies," he told reporters on Thursday.

Mr Palmer, who was flanked by the Motoring Enthusiast's senator-elect Ricky Muir in Sydney, said MPs working together to get legislation passed was a good thing for Australia.

He said the agreement would bring stability to politics.

"We certainly support the Motorists' party and their aspirations for motorists in Australia. Ricky supports our policies on the economy and on other things I believe."

Mr Muir said the agreement would encompass "certain matters" between the two parties, without explaining what those areas of agreement were.

He said his party would work with the Palmer United Party (PUP) to ensure the smooth operation of parliament and the orderly operation of the Senate.

"This will provide the government and the people of Australia the certainty," he told reporters.

"Together, I can do so much more than I could've achieved alone."

Mr Muir said the role of holding the balance of power between the two parties would be "critically important to the future of Australia".

Mr Palmer called for more resources for his party to ensure efficient decision-making on legislation, saying it was important to avoid "gridlock" in parliament.

Mr Palmer and Mr Muir were also joined by PUP senator-elects Glenn Lazarus, Jacqui Lambie and Dio Wang.

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