MALCOLM Turnbull will be Australia's next Prime Minister after defeating Tony Abbott in a party room ballot for the Liberal leadership.
Mr Turnbull won the ballot 54 votes to 44. There was one informal vote.
Julie Bishop retained her position as deputy leader, defeating Kevin Andrews 70 votes to 30.
Mr Turnbull is now Australia's 29th prime minister elect.
It follows a dramatic day in Canberra that saw Mr Turnbull confront Mr Abbott and demand he stand aside or spill the leadership.
Ms Bishop also visited Mr Abbott today to tell him he had lost the confidence of the party and that he should go or have a ballot.
Mr Abbott survived a possible spill on February 9 this year when a leadership spill motion was defeated 61 votes to 39 at a special meeting of the Liberal party room.
Today's leadership change comes just over two years after Mr Abbott led the Liberal-National Coalition to victory in the federal election on September 7, 2013, returning the Coalition to government after a six-year absence.
The night of the 2013 election, Mr Abbott acknowledged his "strong and united Liberal National team".