Abbott new leader of Australian Liberal Party – by one vote

Malcolm Turnbull. Photo / AAP

Malcolm Turnbull says he will not resign from parliament after losing a federal Liberal leadership contest against Tony Abbott on Tuesday.

He congratulated Mr Abbott on his succession to the party leadership, but said he would not seek a position on his frontbench.

"He has a big challenge ahead of him and I think all Australians will wish him well," he told reporters.

Mr Turnbull said he wouldn't be retiring from politics.

"If the question is am I going to resign from parliament, the answer to that is no," he told reporters.

"There'll be no by-election in Wentworth.

He'll discuss with his wife Lucy and children Daisy and Alex over summer on whether or not to recontest the next election.

Mr Turnbull thanked party colleagues and voters who supported his stance on emissions trading.

"It's been difficult times and there's been a lot of drama going on, and I want to thank all of them for their loyal support."

The Labor legislation, setting up the carbon pollution reduction scheme, was "worthy of support".

"I think if the legislation is voted down this week, obviously that would be a double-dissolution trigger."

Mr Turnbull said he was naturally disappointed about the result of both the leadership and ETS votes.

"I'm disappointed that there's not only been a change in leadership, but there's been a pretty dramatic change in policy."

It was inevitable that once Mr Abbott was elected leader, a large number of people would support his position to reject the ETS, Mr Turnbull said.

- AAP