Image: Al Jazeera

The Liberal Party will preference One Nation below Labor at the election, following the second part of a damning Al Jazeera investigation.

Prime Minister Scott Morrison made the announcement today after waiting “a few days to see what the response of the One Nation leadership would be”.

The three-year sting caught One Nation chief of staff James Ashby and its Queensland leader Steve Dickson approaching US gun lobby, the National Rifle Association, for donations and campaign strategy.

Now, part two of the investigation has implicated Party leader Pauline Hanson.

Secret video shows Ms Hanson questioning if the Port Arthur massacre was actually a government conspiracy.

Prime Minister Scott Morrison has denounced One Nation and promised to preference the party below Labor at May’s election, saying “sadly, I’m disappointed”.

PM @ScottMorrisonMP has now told Liberal Party officials One Nation must be preferenced BELOW Labor at the election.@2GB873 @3AW693 @NewsTalk4BC @6PR

— Eliza Edwards (@ElizaEdNews) March 27, 2019

Senior government minister Peter Dutton tells Ray Hadley he’s dismayed.

“People can complain about the way in which it’s been gathered or recorded…

“But for somebody to believe that Port Arthur was a conspiracy or somehow it didn’t happen the way police indicated it happened is quite bizarre, Ray.

“It’s disturbing and I think a lot of One Nation supporters would be very disappointed.”

Click PLAY below to hear the full interview

Part II of the investigation has further damning footage of James Ashby and Steve Dickson meeting with potential donors in the US.

They are seen discussing how they could get millions of dollars in funding past Australia’s political donation laws.

CLICK PLAY BELOW TO WATCH PART II IN FULL