A leadership showdown for the Victorian Liberal party will be a contest between Matthew Guy and Michael O'Brien.
Mr Guy, the outgoing planning minister, said he wanted to defeat the new Labor government after just one term.
"More than ever Victoria needs a united, vigorous and energetic opposition," Mr Guy said in a statement.
Mr O'Brien, treasurer for about 18 months in the Napthine government, said the challenge would be between friends, and the party would unite behind whoever won the top job at a leadership ballot on Thursday.
"Matthew and I are not just colleagues, we've been mates for over 20 years," Mr O'Brien said.
While Labor comfortably won Saturday's election, they have conceded defeat in the contest for Melbourne, giving the Greens its first ever lower house seat in Victoria.
Sitting ALP MP Jennifer Kanis posted a Facebook message saying despite the party's overall election win, Melbourne would not be part of that victory.
"Today's counting has shown that Melbourne will not be a part of the change," she said.
The latest Victorian Electoral Commission figures show Greens candidate Ellen Sandell is now ahead by 681 votes on the two-candidate-preferred basis, about 51 per cent.
Ms Sandell declared victory on Saturday night, but counting of postal votes on Monday showed the result was still very close and the ALP refused to give up on the seat.
Ms Sandell said she always believed the votes would swing back in the Greens' favour.
"I wasn't worried at all, really," she said.
"But, it's nice now to be able to move on."
It comes as the Victorian Nationals become more confident of holding onto the seat of Morwell, with its MP Russell Northe ahead 1327 votes over Labor's Jadon Mintern.
The seats of Bentleigh, Frankston and Prahran are also tight, with the ALP leading the Liberal incumbent Clem Newton-Brown in Prahran by a mere 14 votes in the two-candidate-preferred count.
The look of the new Labor government's front bench will also become clearer soon with incoming premier Daniel Andrews saying he plans to swear in his new ministers on Thursday after a caucus meeting on Wednesday.
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