Canberra: In a brutal party coup, Malcolm Turnbull was shunted out by party rivals and Scott Morrison was put in his chair.
Morrison is the current treasurer of the party and he won an internal ballot 45-40 over former Home Affairs Minister Peter Dutton, said Liberal Party whip Nola Marino.
Turnbull did not stand in the leadership contest.
Turnbull had been under pressure from poor polling, a looming election, and a revolt by conservative MPs.
He had been staring down calls for his resignation as leadership speculation crippled his government.
Morrison is a former Tourism Australia managing director who has held ministerial portfolios including immigration and social services.
The ballot on Friday ended one of the most dramatic weeks in Australian political history. On Tuesday, Dutton narrowly lost a challenge against Mr Turnbull.
Morrison and Ms Bishop entered the race after Mr Turnbull lost key backers, effectively making his leadership untenable.