Tony Abbott's defending his opposition to indigenous recognition in the country's constitution.

Listen above: Donna Demaio joins Rachel Smalley on KPMG Early Edition to discuss Tony Abbott's decision

Prominent Aboriginal leaders want changes to the constitution to recognise Aboriginal and Torres Strait Islanders as the indigenous people.

Australian correspondent Donna Demaio said the Prime Minister believes any recognition would be divisive.

"He says there is a lack of leadership, he says it jars with the notion of finally substituting the 'we' for 'them and us'."

However, Indigenous leaders fear they'll be sidelined.

Demaio said the Social Justice Commissioner Mick Gooda "says it is disappointing, it's hard not to feel some despair that it's already been shot down."

Tony Abbott said he's opposed to any constitution change process that is "indigenous first" or "indigenous only."