Steve Dickson has virtually conceded the seat of Buderim on the Sunshine Coast, leaving One Nation searching for a new Queensland leader.
LNP defector Mr Dickson is well behind in the counting and admitted he was unlikely to win it.
"I'm not about to give it up quite yet, but it's not looking fantastic for me and I've got to be very straightforward," he said at a party function in Buderim.
Mr Dickson said the LNP and Labor had worked together to give preferences to each other to keep him from winning the seat.
"That is the way the cookie crumbles, and the cards fall".
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Mr Dickson has held the seat since 2009 but defected from the LNP earlier this year.
He said he had no regrets about leaving the party, even if it ultimately costed him the seat.
"It has always been about Queenslanders (to me) and I believe both major parties have absolutely forgotten that," he said.
Federal leader Pauline Hanson was still holding out hope of a miraculous turnaround for Mr Dickson.
"I still have faith in Steve," she said while standing next to him.
