The phone hacking court has heard that during a meeting on an upcoming case, a company lawyer told him he would not be dismissed as long as he did not implicate anyone else.
If he named others, Goodman said he was told: "You cannot expect Andy to take you back after that."
The company lawyer also allegedly told Goodman that Coulson would deny any responsibility or involvement.
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The chancellor now faces the prospect of forming a minority government or calling for a snap election.
The 73-year-old said a return is unlikely "given the politicised atmosphere that seems to have afflicted our set."
Chancellor Philip Hammond said the UK will make a financial proposal to the EU in the next three-and-a-half weeks.