Former Victorian Liberal leader Michael O’Brien has told colleagues that he will not run for leader of the battered party, paving the way for the progressive John Pesutto to seize the reins, should he close out victory in Hawthorn over his teal opponent.

Matthew Guy announced on Sunday that he would stand down as Liberal leader and Mr Pesutto has told colleagues that he will run for the leadership if he is successful in Hawthorn which remains too close to call.