Victorian Premier Ted Baillieu has resigned late today at a meeting of Liberal Party MPs and has been succeeded by former parliamentary Liberal leader Dennis Napthine.
Speaking at a press conference Mr Baillieu said it was in the best interest of the Liberal Party.
“I love this state, I love the Liberal Party and I love this role. It has been an honour to enjoy this role," he said.
“It is apparent to me that a change in leadership is in the best interests of the government. I want to put my full support behind Dennis Napthine and will be staying on to support him”.
Mr Baillieu wished Dr Napthine all the best saying "he has my full support. He's an outstanding individual" and that he will be staying on in parliament to support him.
It is expected Mr Baillieu will formally tender his resignation as Premier to the governor tonight.
Mr Napthine said at a press conference "that Ted Baillieu had served the state very well" and that he should be proud of his achievements.
The shock resignation follows a week of turmoil in the state government culminating in the resignation from the Liberal Party of MP Geoff Shaw.
He plans to sit as an independent in an upcoming by-election.
It also follows a number of government MPs and advisors becoming embroiled in a corruption inquiry.
Mr Baillieu has been premier of Victoria since 2010.