Scott Morrison will be the next Australian Prime Minister

The Liberal party room has spoken and Australia will have its seventh PM in 11 years, with Malcolm Turnbull stepping down as Prime Minister following a leadership challenge.

New Prime Minister Scott Morrison Source: AAP

Scott Morrison is set to be Australia's Prime Minister after being elected Liberal leader in a tense party room meeting on Friday.

The motion to force a spill was carried 45 to 40 votes.

Former Home Affairs Minister Peter Dutton, Treasurer Scott Morrison and Foreign Affairs Minister Julie Bishop all emerged as leadership rivals this week ahead of Friday's party room meeting. 

All three nominated for the leadership position in the party room meeting, with Ms Bishop, who was deputy, eliminated first.

Mr Dutton was the first to declare his candidacy, demanding a second ballot after losing to Mr Turnbull by seven votes on Tuesday. 

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