Foreign Minister Julie Bishop had been among the favorites and could have become Australia's second female prime minister.
Liberal MPs are urging the party to overhaul its rules to slam shut the revolving door in the prime minister's office.
SCOTT Morrison will be the nation's 30th prime minister, defeating Peter Dutton in a leadership ballot 45-40 this morning.
Mr Turnbull quit the job after he called for a spill of leadership positions in a Liberal partyroom meeting on Friday.
Treasurer of Australia Scott Morrison arrives for a party meeting in Canberra, Australia August 24, 2018.
The bare minimum majority of 43 signatures were provided shortly before the meeting started.
The Australian prime minister visited the White House earlier this year after initially getting off to a rocky start in his relationship with President TrumpDonald John TrumpTrump praised White House defender who was sacked for sexual harassment: report Cohen's father said he didn't survive Holocaust to have his name "sullied" by Trump: report NYT: Trump after Cohen plea mused, 'How did we end up here?' MORE. The trend is universally hated by Australians.
Alvaro Morata - 'Never a thought' of leaving Chelsea this summer
We were defending very deep". "The squad is phenomenal with many great players; that's why it wasn't so hard to adapt quick". "It's better for me".
But the extend of disquiet about Turnbull's leadership proved to be exaggerated by many Dutton supporter.
"The political turmoil of the past decade has come at the cost of our global competitiveness. the business community needs policy certainty to promote investment and improve business confidence." said Tony Johnson, chief executive officer of Ernest & Young. The resignation could also push his successor into immediately calling general elections.
Some lawmakers who were against the change of prime minister said they had agreed to sign the petition in a bid to end the impasse.
The spill motion was carried 45 votes to 40. Mr. Turnbull initiated the ballot in the hope of ending speculation that his government had lost faith in him in the face of poor opinion polling.
Opposition Labor Party leader Bill Shorten told Parliament on Thursday it was evidence that "Australia no longer has a functioning government".
Queensland MP Scott Buchholz wants a mechanism to prevent the leadership tension that has thrown the government into crisis.
"The Liberal Party, whatever it does today and tomorrow, is irreparably split", Mr.