Matthew Guy says he will step aside as Victorian Liberal leader following his second election loss last night to Daniel Andrews.
The Coalition look to have won 21 seats and have their nose ahead in another seven, putting them on track to achieve a similar result to 2018, when they held just 27 of 88 lower house seats.
"The respectable state-wide two party preferred swing to the Coalition of 3-4 per cent was the most profound in the exceptional swings to the Liberal Party in Melbourne's north and west," Mr Guy said in a statement on Sunday.
"This represents a huge future electoral opportunity for the Liberal Party.
"As soon as it is clearer which Liberal Party candidates will form the next parliamentary party room, I will call them together to elect their new leadership team.
"I will not be a candidate for the position of leader."