Australian prime minister Julia Gillard has been defeated in a dramatic leadership challenge by party rival Kevin Rudd.

Ms Julia Gillard was ousted in a Labor Party ballot by 57 votes to 45, just months ahead of a September election.

She called the vote earlier amid reports that former leader Mr Rudd’s supporters were gearing up for a challenge.

Mr Rudd will lead the country for a second time, with months to go until a general election, after winning the Labor Party ballot by 57 votes to 45.

Ms Gillard, who ousted Mr Rudd as leader in 2010, called the vote earlier amid reports that her predecessor’s supporters were gearing up for a fresh challenge.

Opinion polls had shown that the party could face huge losses in the September elections, but that Mr Rudd would be a more popular leader than Ms Gillard.

The country’s first female leader has pledged to quit politics after the elections.

She earlier pledged to quit politics after the elections if she lost the leadership challenge.

Mr Rudd must now demonstrate that he can command a majority of the House of Representatives before the governor-general makes him prime minister.

If he cannot, opposition leader Tony Abbott could be asked to form a government, or the elections could be moved from September to August.

Welsh-born Ms Gillard, who ousted former diplomat Mr Rudd as leader in 2010 in a similar showdown, called the vote earlier amid reports that her bitter rival’s supporters were gearing up for a fresh challenge.

Opinion polls had shown that the party could face huge losses in the September elections but that Mr Rudd would be the more popular leader.

Mr Rudd must now demonstrate that he can command a majority of the House of Representatives before the governor-general makes him prime minister.

If he cannot, opposition leader Tony Abbott could be asked to form a government, or the elections could be moved from September to August.

In March, Ms Gillard managed to retain the leadership of the party after she was urged to hold a ballot and Mr Rudd admitted he did not have enough support to defeat her. Mr Rudd also lost a bid for the leadership in 2012.

As she called the latest ballot earlier, with just hours of notice, she appeared frustrated over the petition for a vote that was circulating within the party.

She said: “Call me old-fashioned, but the way in which these things are normally done is a challenger approaches the leader of the Labor Party and asks them to call a ballot for the leadership, who shake hands and then a ballot is held.

“That hasn’t happened but in these circumstances I do think it is in the best interests of the nation and in the best interests of the Labor Party for this matter to be resolved … ”

Mr Rudd had said Labor was facing a “catastrophic defeat” at the next election unless there was “change”.

He has promised tighter control of public spending, a speedier return to surplus budgets, and stronger economic growth if he wins office.

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