The Australian Democrats will consider a formal alliance with like-minded political parties in Britain and New Zealand and launch a concerted bid to break into local government as part of a strategic review of the party's future.

The party formally agreed yesterday to undertake the six-month review, which will look at adopting continuous campaigning and better fund-raising, and assess the party's membership and philosophy after a dive in support in the South Australian state election and mixed results in the federal, Queensland and Western Australian polls last year.

Democrats leader Natasha Stott Despoja said yesterday she took responsibility for the strategic direction of the party but was not to blame for the South Australian result, in which the party's vote fell from 16 to 7 per cent.

She declared her leadership safe. Party sources said there was no sign of a challenge.

"My leadership is secure and strong and I've just been overwhelmingly endorsed by the party leadership," she said. "I'd like to see the other federal political leaders put to the same test."

Democrats national president Matthew Baird said the party had good contacts with the Liberal-Democrats in Britain and the left-wing Alliance Party in New Zealand and was looking at tapping into their electoral strengths.

Democrat senators John Cherry, Meg Lees and Andrew Murray said they supported the move.

Mr Baird said the Victorian branch of the Democrats was preparing to enter local government elections, adding that the Liberal Democrats had gained credibility from local government work.

The review will also consider whether the party should employ a full-time paid national secretary and campaign director, and discuss whether the Democrats should stand candidates in every seat. Senior party figures believe this is critical to winning Senate votes.

Mr Baird said the Democrats' membership had almost doubled during the past year. It is believed membership rose from around 6000 to 10,000, with up to half the new members signed up over the Internet.

Senator Stott Despoja said the review needed to examine the Democrats' identity and goals. She said it was not a policy review and the party would retain its opposition to the government's refugee policy.

"We want to be a major party, but at the moment perhaps, we're a major minor party," she said.

"But we still have the crucial balance of power in Senate."

The Democrats have not decided who will head the review.

Terms of reference will be drawn up in the next week by Senator Stott Despoja, deputy leader Aden Ridgeway and party officials.