Jailed ex-Thai prime minister Thaksin Shinawatra's party, which came third in the kingdom's general election, said on Friday that it would hold coalition talks with the winning party.

Caretaker premier Anutin Charnvirakul's pro-military and pro-monarchy party, Bhumjaithai, had its best electoral performance ever in polls that took place after two rounds of deadly border clashes with Cambodia last year.

Thailand's most successful party of the 21st century, Pheu Thai, had its worst election result ever Sunday, raising questions about the future of the political machine built by jailed Thaksin.

"We have no conditions for working with any party," Prasert Chanruangthong, secretary-general of Pheu Thai, said at a press conference at party headquarters.

He said Pheu Thai representatives would meet with Prime Minister Anutin's conservative Bhumjaithai party that won a stunning election victory at the weekend.

The latest incarnation of the organisation founded by the telecom billionaire, Pheu Thai came a distant third, its vote share in the party-list section plunging by more than half.

Voters appeared to turn their backs on the reformist People's Party, which came second.

Pheu Thai and Bhumjaithai were previously coalition partners, until Anutin pulled out over a Cambodia border dispute scandal.

Anutin, who took office in September, declined to be drawn on Monday on potential coalition talks.

"Everything is still under consideration and in progress. Whatever the case, I have to bring this matter to the party meeting first," he said.

"There are still procedures to follow."

Thaksin is serving a one-year prison sentence for corruption in office, but many observers expect him to be released earlier than scheduled alongside a political agreement. (AFP)