Labour and National are forming their teams for negotiations with New Zealand First, and Mr Peters says New Zealanders will know before October 12 who will form the new Government.
Former Associate Health Minister, Internal Affairs Minister & United Future leader Peter Dunne has at different times helped form a coalition government with National and Labour.
There will be "a lot of blood on the floor" before a new government is formed, he says.
Mr Peters' personality was proving to be a factor in the negotiations "and that's got the seeds of its own destruction laid right within it", he said.
"Mr Peters has a well-known and well-developed sense of utu... The question is how much that comes into play.
"If it's significant and it's clearly about revenge ... then this will be a very short-term coalition."