Boris Johnson, the frontrunner in the contest, won the most votes cast in the second round of voting to be leader of the Conservative Party.
"We are talking about combining forces because it is clear that Boris is going into the last round and the question is who is best placed to sit on a stage with Boris Johnson and who is best placed to ask the testing questions that need to be asked," Stewart told the BBC.
A spokeswoman for Rory Stewart's leadership campaign confirmed conversations about a joint ticket with Michael Gove had been held, but stressed "Rory wants to lead".
She said: "Clearly at some point people will need to combine teams.
TEAMING UP: Rory Stewart, left, is in talks with fellow candidate Michael Gove (Pic: GETTY)
TALKS: Stewart featured in the leadership debates last night (Pic: GETTY)
"But any team that gets combined, Rory wants to lead it – Rory believes he is the only one with a chance to beat Boris in the final two and to provide the clearest choice.
"He's the one out polling in the areas we need to win.
"Rory's in this to win, whether on his own or with other people coming behind him – and go all the way to the final two and Number 10."
Dominic Raab was the last candidate to be eliminated from the leadership process.
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“Clearly at some point people will need to combine teams”
Spokeswoman for Rory Stewart's leadership campaign
He today backed Boris as "the only man to deliver Brexit on time".
Another candidate will face the axe on this afternoon.
Johnson, Gove, Stewart, Jeremy Hunt and Sajid Javid are battling it out for the top job.
A debate was held last night – hosted by the BBC.
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