Lead defense lawyer Rene Saguisag informed the Sandiganbayans three-member special division they might take legal action against Gonzalez, who called Narvasas testimony on Wednesday a "concoction."
"We are seriously considering filing a contempt petition against Gonzalez for his immensely hurtful slur that Narvasa, who he may not have forgiven for being among those who ordered his suspension, and the defense team, are shysters who concoct stories," Saguisag said.
Gonzalez had earlier denied any knowledge of an alleged offer by the Arroyo administration in early 2001 to let Estrada go into exile following Narvasas testimony at Estradas corruption trial.
"Im not privy to these so-called negotiations, but its so easy to concoct stories," he said earlier. "A defense team can always concoct a story by saying this has happened, so I would take it with a grain of salt."
Narvasa testified that he spoke with Mrs. Arroyo by telephone during the last week of January 2001 and was told to negotiate with her emissaries, former justice secretary Hernando Perez and banker Ernest Escaler.
Estrada was given two choices: resign and go into exile, or flee the country scot-free with his family along with their assets, according to Narvasa.
State prosecutors at the trial did not question Narvasa. Lead prosecutor Dennis Villa Ignacio said the testimony was irrelevant to the case.
Estradas lawyers said his decision to stay in the country proved his innocence.
"His refusal was indicative of his frame of mind that he did not violate any law and that he was ready to face the charges in court. It is of vital importance because if he had acceded, then there would have been no charges," former justice secretary Serafin Cuevas told reporters.
Malacañang has neither confirmed nor denied Narvasas testimony.
Press Secretary Ignacio Bunye said earlier he was unaware of any exile offer. "I think were delving into speculation here," Bunye said.
Bunye also refused to say how Mrs. Arroyo reacted to Narvasas testimony, saying she had been very busy.
Perez refused to comment, saying he might be cited for contempt. He said he would give his side if called by the court.
Estrada is on trial for plunder, among other charges, which carries the maximum penalty of death.
He is accused of amassing millions of pesos from an illegal gambling protection racket that he ran during his 31-month presidency.
He allegedly laundered the proceeds in a secret local bank account under the name Jose Velarde and used the money to build mansions for his string of mistresses.
Estrada denies the charges and claims the trial is rigged. He insists his ouster is illegal and he enjoys immunity from suit.
Estrada was replaced by then vice president Gloria Arroyo.