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"Earlier this morning, I called the prime minister to advise him that it was my judgement that the majority of the party room no longer supported his leadership," Mr Dutton told reporters at Parliament House on Thursday morning.
"As such, I asked him to convene a meeting of the Liberal Party at which I would challenge for the leadership."
The former home affairs minister lost a challenge 48 votes to 35 on Tuesday but now wants to have another go at toppling his leader.
It is believed Mr Dutton is now confident he has the numbers to force an extraordinary partyroom meeting and ultimately claim the leadership.
He has also released the legal advice which he says makes clear he is eligible to sit in parliament after questions were raised over his family's business interests in two childcare centres.
Questions have been raised if he could be in breach of section 44 of the constitution, which bans from parliament anyone who has "any direct or indirect pecuniary interest with the public service of the Commonwealth."