Australian foreign minister resigns as new prime minister announces 'peace-making cabinet'

Embattled Australian Prime Minister Malcolm Turnbull narrowly survived a leadership challenge from within his own party on A

Bishop received 11 votes in Friday's leadership ballot - coming in behind both Prime Minister Scott Morrison and former Home Affairs Minister Peter Dutton - in a surprise result, given that she is popular amongst voters and well regarded in the global diplomatic circuit.

The Australian foreign minister said on Sunday she was quitting after a failed bid for the nation's top job during a messy party-room coup, as the new prime minister announced a peace-making Cabinet.

Turnbull then relinquished his prime ministership on Friday after a second leadership spill that saw former Treasurer Morrison defeat Dutton 45-40 in a party vote and be sworn in as Australia's 30th prime minister on Friday night.

"Despite our hearts tugging us to Julie we need to vote with our heads for Scott in round one".

"He said he would consider it but needed to know the precise terms of what was being proposed, as it's not clear how any such role would interact with the minister and all the other bodies in this space".

Mr Dutton, the man who caused the leadership upheaval last week, has made it clear he would like to return as home affairs minister.

WA powerbroker Mathias Cormann will remain as Finance Minister and the Leader of the Government in the Senate, despite his very public support for Dutton.

Bishop announced she would move to the backbench and had not yet decided whether to contest the next election, which is due by May 2019.

'I have been pre-selected by the Liberal Party for the seat of Curtin and I have made no decision regarding the next election, ' she said.

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"We would love to see Julie continue, but that really is up to Julie", he told the ABC on Sunday.

"Be aware this is a ruse trying to get her ahead of Morrison so he drops out and his votes go to Dutton".

As assistant environment minister, Ms Price has been responsible for climate adaptation and resilience, biodiversity, chemicals, waste, air quality and ozone policy, and was the director of Australia's national parks.

Labor's Foreign Affairs spokeswoman, Penny Wong also recognised Bishop "for her trailblazing role as the first Australian woman" to be Foreign Affairs Minister.

Mr Turnbull on Sunday described her as Australia's finest foreign minister and thanked her for her loyalty and friendship.

She said on Twitter, 'I've always respected her ability to cut through the bull-dust, work across the political divide and got on with her job.

Former prime minister and foreign minister Kevin Rudd tweeted Ms Bishop had been a highly effective Australian foreign minister.

Former premier Richard Court said she had been an extraordinary foreign minister and an exemplary local member of Parliament.

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