CANBERRA - Scott Morrison won a party ballot to become Australia's new prime minister on Friday after defeating Peter Dutton and Foreign Minister Julie Bishop in the leadership vote of the governing Liberal Party.

Morrison defeated Dutton, former minister of home affairs and the most senior conservative member of the government, in the ballot by 45 votes to 40.

After his defeat, Dutton said he would provide "absolute loyalty" to Morrison.

Bishop was eliminated in the first round of voting as she received the fewest number of votes.

The 50-year-old Morrison was born in east Sydney, who once worked in the property and tourism industries. He was first elected to the House of Representatives for Cook, New South Wales, in 2007.

Morrison had served as minister for immigration and border protection and minister for social services before appointed as treasurer after Malcolm Turnbull became prime minister in 2015.

Turnbull resigned as the prime minister after 45 of the 85 Liberal Party Members of Parliament (MPs) voted to vacate the leadership at the meeting.

It came just days after Turnbull defeated Dutton 48-35 in a ballot on Tuesday.

Energy and Environment Minister Josh Frydenberg was elected deputy leader of the party, taking over from Bishop.

Turnbull has announced his resignation from the parliament, leaving the government without a functioning majority in parliament.

"I want to thank the Australian people for everything they have done for me," Turnbull told reporters following the vote.

"It has been such a privilege to be the leader of this great nation."