Senior Fianna Fáil TDs believe the Minister for Defence, Mr Smith, has challenged the authority of the Taoiseach by allowing sources close to him to question the timing of next month's Cabinet reshuffle.
With sources close to Mr Smith suggesting Mr Ahern's choice of a long lead-time to the reshuffle had created instability within Fianna Fáil, party TDs said yesterday the Minister's demotion now appeared increasingly likely.
There was no comment yesterday from a spokesman for Mr Ahern on the remarks from Mr Smith's camp.
Although there was no further comment on the reshuffle from the Minister's side, Mr Smith issued a statement drawing attention to, and clearly claiming much credit for, the reduction this year in the average award in the remaining "Army deafness" claims. The statement said the average settlement per case had fallen this year to €5,714 from €8,605 in 2003.
"I am very pleased that my strategy is continuing to reduce the level of average settlements and awards," Mr Smith said.
Several political sources said the remarks on the reshuffle by those close to the Minister, which were reported in The Irish Times yesterday, had prompted some surprise in Government circles.
While the Minister's camp maintains that if Mr Ahern wanted to remove him as Minister, he would have to "take him out", political sources said it was not for Mr Smith to decide whether he should stay in the Cabinet.
One senior party figure said he was "absolutely flabbergasted" at Mr Smith's reported attitude.
"This is a challenge to the Taoiseach. After all, the Taoiseach is the only person who has the power to appoint the Cabinet," the TD said.
"There is general mystification and a lot of trying to read what exactly this means between the lines."
The TD went on to say: "This is calling into question the Taoiseach's whole strategy with the reshuffle.
"Under our Constitution, the Taoiseach has the sole right of hiring and firing in the Cabinet. Membership is totally at the pleasure of the Taoiseach."
However, other figures within Fianna Fáil said the remarks about the timing of the reshuffle and the speculation prompted by the long lead-time had some justification
"It does have a certain element of truth to it. I mean we've been speculating now since July," said one TD.