Prime Minister Justin Trudeau is holding discussions with cabinet ministers and senior party leaders about stepping down early in the new year, but close confidants have walked away from these conversations with starkly different conclusions about where he stands.

One confidant, who spoke directly to Mr. Trudeau this week, said the Prime Minister believes he can no longer continue after Chrystia Freeland rocked the government with her surprise resignation as finance minister and deputy prime minister on Monday.

However, a second source who also spoke to Mr. Trudeau, said the Prime Minister does not want to go and remains motivated to lead the Liberals through the headwinds they face.

The conflicting conclusions reflect the chaotic and fast-moving political dynamics in the aftermath of Ms. Freeland’s departure.