Secretary of State Julie Bishop will not be part of the new Cabinet of Scott Morrison, but says she has not decided whether to leave parliament in the next election.
The new Prime Minister is expected to announce his redesigned front On Sunday afternoon, two days after Malcolm Turnbull, treasurer Josh Frydenberg was substituted for Ms. Bishop as deputy liberal leader.
After 20 years in the federal parliament, including more than a decade as deputy head, Ms. Bishop will be seated at Curtin and let the esteemed front seat position fill in a new appointment.
Trade Minister Steve Ciobo was able to take over the portfolio despite the support of the failed challenger Peter Dutton in the lead pill. Also, Defense Industry Secretary Christopher Pyne, another moderate, could be considered.
Ms. Bishop was favored by bookmakers to take Mr. Turnbull out in the first round of voting in the party room after he could not gain support.
According to reports, she won only 11 votes, but failed to secure the support of one of her Western Australian colleagues in the secret ballot.
Leaked messages showed that the main liberals urged others to vote with their heads and not their hearts. Mr. Pyne was asked to tell Mrs. Bishop that tactics were used in the race against her.
In a statement, she said, "back in the back seat would remain as a strong voice for Western Australia."
"I was preselected by the Liberal Party for the Curtin Seat and I have not made a decision regarding the next election," she said.
Some liberals say that Mrs. Bishop could be a candidate to Governor General Sir Peter Cosgrove at the end of the year to replace his five-year term in March.
Mr. Morrison named Ms. Bishop "a rock star for the Liberal Party, as Secretary of State and for Twitter and Facebook" after her victory on Friday.
"She was an amazing contributor and driver of foreign policy and an advocate of liberal values from one end of this country to the other and from one end of this world to another."
She held senior appointments in the Howard administration including as Minister of Education Science, Education and Minister, who supports the Prime Minister for Women's Issues.
Under Brendan Nelson, she became deputy director of role under Mr. Turnbull twice as good as Tony Abbott in the government and opposition.
The former lawyer and lawyer was managing partner of the leading law firm Clayton Utz in Perth in the 1990s.
Mr Turnbull tweeted on Sunday that Australia was losing its "best foreign minister".
"I thank Julie for her years of loyalty and friendship, and especially for my deputy, and she has been and continues to be an inspirational role model for women here and around the world," he said.
Despite his challenge to Mr. Turnbull, Mr. Dutton is expected to return to Home Affairs while Finance Minister Mathias Cormann is to retain his job.
Secretary of Education Simon Birmingham said on Sunday he loves the portfolio but the composition of the Cabinet is the responsibility of Mr. Morrison.
Labor Party Vice-Chair Tanya Plibersek described Ms. Bishop as a loss to the Liberals.
"You would have been the most popular choice as a leader of the Liberals if you had asked the Australian people," she said.