Julia Gillard has called a leadership vote for 4:30 p.m. local time (1:30 a.m. ET) in a vote that many thought could pit the Australian leader against her rival, former prime minister Kevin Rudd.
However, in a surprise twist, Rudd announced that he would not contest the vote.
"I'm not prepared to dishonor my word," he told reporters. He was referring to comments he made last February after mounting an unsuccessful challenge to Gillard. At the time he said he wouldn't try again.
In 2012, Rudd announced his surprise resignation as foreign minister while on an official trip to Washington. The bid failed when Gillard attracted 71 votes to Rudd's 31.
Labor Party veteran Simon Crean brought the issue to a head on Thursday with demands for the party to put an end to months of infighting.
"I don't want any more games, I'm sick to death of it, it's about time he stood up and instead of having his camp leak things, actually have the courage of his conviction and his beliefs," Crean said.
One hundred Labor caucus members will vote, and 51 votes are needed to win the ballot, according to the Australian Broadcasting Corporation.
Crean said he wouldn't be nominating himself as leader, but would take the job of deputy. Until Thursday, Crean was Minister for Regional Australia, Regional Development and Local Government, and Minister for the Arts.
Two months after pushing Rudd out of the job in June 2010, Gillard went on to win a federal election. However the vote produced the first hung parliament in Australia since 1940.
The Welsh-born politician secured enough support from the Australian Greens Party, and independents, to form a minority government.
However last month, the Greens pulled their support, with leader Christine Milne accusing the Gillard government of ''walking away from its agreement with the Greens and into the arms of the big miners.'' The parties clashed over
In January, Gillard surprised the country by calling an election for September 14, the longest lead time for an Australian election in history.
At the time, experts warned the tactic could backfire.

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