JULIA Gillard says she is "honoured" to become Australia's first female Prime Minister after she won a stunning leadership contest against Kevin Rudd this morning.
"I feel very honoured and I'll be making a statement shortly," she said.
Ms Gillard is expected to make a full statement at 11am (AEST).
In a historic decision, Labor MPs decided to oust Mr Rudd who will go down in history as the first Prime Minister ever to be turfed out by his party within his first term of winning power.
The leadership handover occurred without a ballot after Mr Rudd decided not to force his supporters into declaring their support.
Ms Gillard's victory was assured last night after most of the Rudd government ministers, including Treasurer Wayne Swan, decided to end his run as the Labor leader.
A confident Ms Gillard, flanked by the Treasurer who will become her deputy, walked into the Caucus meeting, certain they had the numbers to defeat Mr Rudd.
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At 9.36am (AEST), Caucus spokesman and New South Wales Senator Michael Forshaw emerged to declare Ms Gillard would become Australia's next Prime Minister.
"The new leader elected unopposed is Julia Gillard, the new deputy leader is Wayne Swan," Senator Forshaw said, outside the Caucus room.
Ms Gillard, and the man she ousted as national leader, addressed a dazed Labor partyroom.
Mr Rudd - who won power in 2007 with a popular Kevin 07 campaign - bowed to pressure from his colleagues and withdrew from the contest, assuring Ms Gillard's ascension to the leadership.
Mr Rudd's decision to stand aside came as he lost the backing of key factional brokers and powerful unions including the Australian Workers Union after ALP powerbrokers formed the view that the Government was heading for defeat unless it changed leaders.
A suite of Ministers, including Sports Minister Kate Ellis and Climate Change Minister Penny Wong, decided to back Ms Gillard.
Heading into the Caucus meeting, senior factional leaders claimed Ms Gillard had at least 70 votes from a Caucus of 112.
Mr Rudd's defeat represents the most stunning political turnaround imaginable, for a leader who just a few months ago was rivalling Bob Hawke in the popularity stakes.
But a series of political mistakes including ditching the emissions trading scheme and rolling out a new 40 per cent "super" profits take on the mining sector, saw a collapse in Mr Rudd's and Labor's vote.
The historic vote of confidence for Ms Gillard will see her installed as Australia's 27th Prime Minister.
Mr Forshaw said it had been a difficult time for both Mr Rudd and the Labor Party.
"He led us to victory in 2007, a victory that was achieved when many people thought that we would still be spending more years in Opposition.
"That is a great achievement, he did that with Julia Gillard as the Deputy Leader."
Mr Forshaw said he is now looking "confidently forward to the next election", led by the new team.
Mr Rudd ignored questions from reporters as he left the Caucus room.
He was accompanied by senior ministers John Faulkner and Kim Carr and Queensland backbencher Jon Sullivan.
Labor's new leaders have left the Caucus room without speaking to reporters.
Frontbencher Craig Emerson said Mr Rudd was "not as happy as gay" as he left the meeting.
"Julia Gillard is Prime Minister and we will all completely and fully support her," he said.
More to come ...
No wonder, I have never heard of Julia Gillard before. Guess wait and see how she go with running the country... until next federal election on April next year.
Wikipedia of prime minister. President is better than prime minister.