The row over whether MP Douglas Carswell blocked an attempt to get Nigel Farage a knighthood is being referred to UKIP's National Executive Committee, the BBC understands.
Mr Carswell, the party's only MP, has denied trying to stop an honour for ex-UKIP leader Mr Farage.
Mr Farage accused the MP of "working for the Conservatives" and called for him to be expelled from the party.
But Mr Carswell, who defected from the Tories in 2014, said: "I'm 100% UKIP."
The BBC's assistant political editor Norman Smith said the decision on Mr Carswell rests with the party's ruling 18-strong National Executive Committee.
He added that he had been told the MP's future would depend on his "attitude".
On Tuesday The Daily Telegraph reported that in an email about the attempt to get a knighthood the MP had suggested Mr Farage should settle instead for an OBE for "services to headline writers".
Mr Farage was asked about his row with Mr Carswell on BBC Radio 4's Today on Wednesday, saying that he was "not particularly" interested in a knighthood.
He said: "He (Mr Carswell) has been working against us since the referendum... working with his Tory friends."
Mr Farage said that he had wanted to "get rid" of Mr Carswell, who won the Clacton seat at the 2015 election, for a very long time.
He said he did not want a seat in the House of Lords and thought it unlikely he could be offered a post with US President Donald Trump.
Mr Carswell said he had an "amicable" meeting on Tuesday with party chairman Paul Oakden and was happy to continue to represent UKIP in the Commons.
He said: "Contrary to a lot of speculation, we had a very polite and amicable meeting. I think he has done a wonderful job as party chairman."
Meanwhile, UKIP donor Arron Banks suggested on Tuesday he could stand against Mr Carswell at the next election.
The two have different views about UKIP's future direction and strategy.