Earlier this week, Turnbull had said that he will step down from the party's leadership only if rival Peter Dutton produces a letter with sufficient signatures.

Dutton, the former Home Affairs Minister, lost the ballot 40-45 as Morrison took top spot.

Turnbull became the fourth Australian Prime Minister in a decade to be removed internally.

Morrison (L) edged out his opponent Dutton (R) 45-40 in the internal ballot.

"It has been such a privilege to be the leader of this great nation. I love Australia. I love Australians," he said on Friday.

Following his defeat, his second in a week's time, Dutton said: 'My course from here is to provide absolute loyalty to Scott Morrison, and make sure we win the election."

Dutton had unsuccessfully challenged Turnbull in a leadership vote. However, the narrow win for Turnbull proved disastrous for him, as many as 10 MPs handed him their resignation, including the challenger.

Turnbull's popularity dropped after he lost a recent by-election in Queensland.

Banner Image: Scott Morrison/Twitter