It's understood "ScoMo" - who has served as treasurer since 2015 - won the leadership content 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.
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