Prime Minister Malcolm Turnbull has seen off a leadership challenge from Home Affairs minister Peter Dutton in a 48-35 vote of party members.
The Coalition’s whip Nola Marino confirmed the results of the leadership ballot in a courtyard at Parliament House on Tuesday morning.
The contest came suddenly during a closed-door partyroom meeting when Mr Turnbull declared the leadership positions vacant, forcing challengers to declare their intentions.
SBS News understands Mr Dutton was the only challenger.
Earlier, Prime Minister Malcolm Turnbull tried to quell tension within party ranks by abandoning plans to legislate emissions reduction targets.
But the move has failed to silence conservative critics within the Coalition.
Former Prime Minister Tony Abbott said the backflip showed his successor was willing to abandon his core beliefs.
“What we want to know is, where are this prime minister's convictions?” Mr Abbott told reporters outside Parliament House on Monday evening.
“We always thought that he was convicted on climate change issues. I think he probably still is. And it was a conversion of convenience this morning.”
The Liberal party room will meet on Tuesday amid growing speculation the Home Affairs minister Peter Dutton is considering a leadership challenge.