Canberra: Ending a week-long political drama, Malcolm Turnbull faced the axe as his colleagues chose treasurer Scott Morrison as Australia's new Prime Minister and their new leader, following a closely fought internal vote.
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.
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