Australia leadership: PM Gillard defeats Kevin Rudd

Ms Gillard, who ousted Mr Rudd as PM in June 2010, won by 71 votes to 31. She called the ballot after weeks of speculation that Mr Rudd was going to challenge her for the top job.

Correspondents say the result is a major boost for a leader who had been facing major internal divisions.

Speaking after the vote, Mr Rudd threw his support behind the prime minister.

A cabinet reshuffle is now expected to fill his position as foreign minister, from which he resigned last week.

Australian media earlier reported the win as 73 to 29.

'Without rancour'

Speaking at a press conference after the results were announced, Mr Rudd congratulated Ms Gillard on ''her strong win today''.

''The caucus has spoken. I accept the verdict without qualification, without rancour,'' he said. "I dedicate myself to working fully for her re-election as prime minister of Australia."

Thanking his family, supporters, staff, colleagues and members of the international diplomatic community, he also said he would ''bear no grudges'' against those who criticised him.

He did not take any questions from the media, but is expected to move to the backbenches.

Ms Gillard now has to focus on healing divisions within the party and reasserting her authority, says the BBC's correspondent in Sydney, Duncan Kennedy.

All eyes are now on how she will reshuffle her cabinet after a handful of ministers came out in support of Mr Rudd. Defence Minister Stephen Smith is seen as the front-runner to fill the position of foreign minister.

Mr Rudd came to power with an electoral landslide in 2007 after more than a decade of conservative rule and enjoyed some of the highest popularity ratings for a prime minister in years.

But he went on to lose the confidence of colleagues over his environmental and taxation policies, and was ousted by Ms Gillard who at the time was his deputy. She became Australia's first female prime minister in June 2010.

He returned to the cabinet as foreign minister, but in recent months as Ms Gillard's support fell in opinion polls there was widespread speculation that a leadership bid was imminent.

At the press conference Mr Rudd, now a backbencher, said that he knew challenging Ms Gillard for the leadership would be tough, but had been the ''right thing'' to do.

''But we Queenslanders are made of other stuff,'' he said.