The Liberal Party’s federal executive has resolved to place its dysfunctional NSW division under the control of party elders for the next 10 months amid growing fears it was ill-prepared to fight the federal election and could even cost Peter Dutton victory.

A meeting of the executive, held at the behest of Mr Dutton on Tuesday, requested the state executive be replaced by a committee of management comprising Victorian party veterans Alan Stockdale and Richard Alston, and former NSW minister Rob Stokes.