Julia Gillard is to become Australia's first female prime minister after Kevin Rudd stood down as Labor leader at a caucus meeting in the last hour.
It is being described by the Australian media as a bloodless coup, as Kevin Rudd decided not to stand in this morning’s ALP Leadership ballot, relinquishing the Prime Ministership and handing over power to his Deputy Julia Gillard.
The Sydney Morning Herald reported that Gillard, not Rudd, will now decide when to lead her party into the next election.
Rudd, who made "a very gracious speech", stood aside to avoid a humiliating defeat.
This report from the ABC:
Treasurer Wayne Swan was elected deputy leader unopposed.
Just a year ago, Rudd rivaled Bob Hawke as Australia's most popular leader.
But he now joins Hawke as the only other Labor prime minister dumped by his party.
Rudd had decided to fight to the death after refusing to step aside last night for Gillard.
Gillard, however, was believed to have the numbers before going into this morning's ballot, which was not held.
She also had the backing of the powerful Australian Workers Union.
A series of policy failures, poor polls and the decision to go to war with the mining industry have all contributed to Mr. Rudd's plunging fortunes among his colleagues.
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Rudd quits, Gillard new AUS PM