Australia leadership ballot

Gillard faced a challenge for the post from fierce rival Kevin Rudd, who himself had been deposed by Gillard in a leadership coup in 2010.

According to the Sydney Morning Herald newspaper, quoting an unidentified source inside the Labor Party caucus room, Gillard garnered 71 votes to Rudd's 31 in a secret ballot.

The result is to be announced officially following the meeting.

Gillard had called the vote after Rudd, who until earlier this week was serving as foreign minister, quit his post whilst abroad and said he would return to Australia to contest the prime ministership.

The long-standing rivalry between Rudd and Gillard had threatened to destroy Labor's final chances of defeating the center-right Liberals in the next national polls, scheduled to be held before November 2013.

It had widely been held that Rudd - the preferred national leader in opinion polls - stood a better chance of prevailing over opposition leader Tony Abbott in the event of an election. But he was unable to attract the same support within party ranks.

Rudd is expected to retire to the backbenches to lick his wounds. The loss signals a fall from grace for the Queensland native, who came to power as prime minister in 2007 after defeating long-time Liberal leader John Howard in a landslide.

dfm/bk (AFP, AP)