Scott Morrison will become the 30th prime minister of Australia after trouncing Peter Dutton and Julie Bishop in a three-way race for the Liberal leadership.
It's understood "ScoMo" - who has served as treasurer since 2015 - won the leadership contest 45 to 40 votes in the party room, with the motion to force a spill also carried 45 to 40 votes.
Josh Frydenberg was elected deputy Liberal leader.
Former Home Affairs Minister Peter Dutton, Foreign Affairs Minister Julie Bishop and Mr Morrison 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 the foreign minister knocked out in the first three-way vote, clearing the way for a one-on-one contest between Peter Dutton and Scott Morrison.
The former treasurer emerged as a potential compromise candidate this week after former Home Affairs minister Peter Dutton declared his intention to challenge for the leadership on Tuesday.
Malcolm Turnbull is expected to resign from parliament altogether, triggering a by-election in his Sydney seat, after his colleagues voted to dump him 45 votes to 40.
Mr Turnbull did not contest the subsequent leadership ballot.
In an extraordinary press conference on Thursday, the then-prime minister criticised rebel MPs within his party for staging an “internal insurgency”.
"I have never given in to bullies, but you can imagine the pressure it's put people under," he told reporters.
“They’re hard to stop,” he said.
“What we have witnessed at the moment is a very deliberate effort to pull the Liberal Party further to the right.”
Earlier, as a petition calling for a party room circulated among Liberal MPs, Senator Eric Abetz - a Peter Dutton backer - said Liberal Party's Federal Executive had called on the party to end the leadership chaos as soon as possible.
Complicating matters, Mr Dutton was referred to the solicitor-general over his eligibility to sit in parliament due to family financial interests in childcare centres that receive government subsidies - a possible breach of constitutional rules.
The nation's top lawyer has since cleared Mr Dutton to continue in parliament.
