Federal government rejects former CFMEU boss John Setka's claim ...

The federal government says former Construction, Forestry, Mining and Energy Union (CFMEU) Victorian branch boss John Setka's claim of a secret deal where Mr Setka's resignation would save his union from administration is "absolutely fanciful".

Mr Setka, speaking on Channel 7's Spotlight program on Sunday night, claimed there were talks between the CFMEU executive branch, former workplace relations minister Tony Burke and Australian Council of Trade Unions (ACTU) secretary Sally McManus to establish a protective deal for the CFMEU.

The embattled CFMEU has been under intense scrutiny since July, when allegations of serious misconduct were reported by Nine newspapers, including claims the union has been infiltrated by underworld figures.

Former CFMEU Victorian secretary John Setka claims the federal government acted dishonourably.  (AAP: Stefan Postles)

On July 12, Mr Setka stepped down from his role as secretary of the CFMEU's Victorian branch after 12 years.

On Sunday, Mr Setka claimed he did this in an effort to prevent the government from appointing independent administrators to the Victorian branch of the union, under the secret deal he alleged was put in place.

John Setka alleges both Tony Burke and Sally McManus helped to orchestrate a secret deal between the union and the government. (ABC News)

Mr Setka said despite his departure, the government did not hold up their end of the secret bargain.

"My job is to protect the union, so I said 'I'll leave today but they don't bring administrators in'," he said.

"When you do a deal with the government, you expect them to honour it, especially when the comments that come out of [Minister] Burke's mouth are 'there will be no surprises'."

On Monday, Mr Burke's ministerial successor Murray Watt called Mr Setka's interview "quite bizarre" and characterised the claims of a secret deal as "absolutely fanciful".

"This idea from John Setka is utterly ridiculous, and it’s another desperate attempt from John Setka to distract attention away from the problems he has caused for his union and his members," Senator Watt said.

Former CFMEU official John Setka has the words "God forgives the CFMEU doesn't" tattooed around his neck.  (Instagram: Classic Ink Tattoo)

Ms McManus also dismissed Mr Setka's allegations as inaccurate, and said the ACTU's position had not changed.

"Anyone accused of serious wrongdoing needed to stand aside. This was the counsel given to the CFMEU at the time," she said.

"In this case, John was not the only person accused of serious wrongdoing."

CFMEU national secretary Zach Smith has been contacted for comment.

On Friday, the construction arm of the CFMEU was forced into administration across the country in response to the alleged corruption.

Mr Setka alleged the entire executive branch of the CFMEU were aware of the deal made over his resignation.

"I was absolutely disgusted, I think Tony Burke has betrayed construction workers in Australia," Mr Setka said.

"They've lied through their teeth, they've been dishonourable along with the ACTU and it was all about stitching up the CFMEU."

Mr Setka said it was an intentional move by the government to hamstring the rapidly growing CFMEU.

Murray Watt says John Setka is attempting to distract people from issues that he caused the union. (ABC News: Matt Roberts)

The former union boss has also been embroiled in a feud with Prime Minister Anthony Albanese, who campaigned in 2019 to remove Mr Setka from the ALP.

Mr Setka said the last time he spoke with Mr Albanese was during a "brief conversation" in an elevator, where he left the prime minister "trembling", despite Mr Setka insisting he did not say anything "bad" to Mr Albanese.

"He was scared … when someone starts trembling you know they're scared, he hasn't even said a word," he said.

Senator Watt called Mr Setka's account "laughable".

"It's just John Setka trying to beat his chest and be the tough guy which is what he's been doing his entire career," Senator Watt said.

"Anthony Albanese isn't scared of John Setka, nobody in our government is."

In an interview with ABC Radio Sydney, Mr Albanese flatly denied ever being intimidated by Mr Setka.

"Nonsense. I didn't watch the interview and I don't know why they gave him airtime, it's a decision for them," he said.

When pressed on claims that the union had been infiltrated by criminal elements such as bikie gangs, Mr Setka was dismissive. 

"Bikies work in every industry, bikies have been working in the building industry since Jesus wore shorts," he said. 

He said the union was not in a position to discriminate against workers who were members of clubs, and that it would be a breach of a worker's freedom of association.

The government takeover of the construction arm of the CFMEU will be for a minimum of three years. (ABC News: Brian Hurst)

However, Mr Setka said "all sorts of terrible people" had tried to gain a foothold in the industry and the union had fought them in order to protect its members.

"We've had to stand up to these people. The authorities haven't, no government agency has, we're the ones that have had to stand up to these people and push some of these people out of the industry," Mr Setka said.