Angus Taylor has resigned from the Coalition frontbench, setting up a contest to replace Sussan Ley as the Liberal Party leader.
Taylor met with Ley tonight and spoke to media shortly after.
"I've tendered my resignation as a member of the shadow cabinet," Taylor said.
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"I've sought to be a constructive member of the leadership team, supported Sussan Ley's leadership in a difficult time when we needed a rebuild of the party.
"But we can't mince words. The Liberal Party is at the worst position it has been since 1944, when the party was formed. That is a confronting reality and we cannot ignore it.
"I don't believe Sussan Ley is in a position to be able to lead the party, as it needs to be led from here."
Media reports suggest Taylor's resignation will be followed by other Liberal frontbenchers. However, other key Liberals have told 9News Taylor's numbers for victory are not assured.
Ley, who met with Israeli President Isaac Herzog inside Parliament House earlier today, is the first woman to lead the Liberal Party after edging out Taylor in a partyroom ballot in May.
A leadership spill has been looming after a tumultuous period for the Liberals.
The Coalition split last month when three Nationals senators voted against the government's hate groups bill and were sacked from the frontbench.
Although the parties have since come back together, there have been growing concerns that One Nation has overtaken the Liberals in opinion polls and Ley's personal preferred prime minister polls have tanked.
The latest Newspoll released on Monday saw the Coalition's primary vote slide to 18 per cent, now behind Labor at 33 per cent and One Nation on 27 per cent. The Liberal primary vote is just 15 per cent.
Taylor, who had been the shadow defence spokesperson and formerly shadow treasurer, has emerged as the frontrunner to replace Ley in the event of a spill after fellow conservative Andrew Hastie withdrew from contention late last month.
More to come …
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