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Rishi Sunak will face Liz Truss in the race to be the next PM, after Penny Mordaunt was eliminated in the latest Tory leadership ballot.
Ms Truss overturned Ms Mordaunt's narrow lead in the final vote among Tory MPs, securing a place in the run-off by 113 votes to 105.
She will now go head-to-head with Mr Sunak, who topped the final ballot with 137 votes.
The winner will be decided by a vote among Conservative party members.
Foreign Secretary Ms Truss's qualification comes after a late surge in support, as she gained 27 votes from the last vote whilst Ms Mordaunt only 13.
The two had been scrambling to secure the backing of MPs who had backed Kemi Badenoch, who was knocked out after the previous round.
Former Tory leader Iain Duncan Smith, a Truss supporter, said her campaign had "come with momentum at the end".
He added that her stance on post-Brexit regulatory reforms and plans to help those on low incomes had convinced colleagues to back her.
The campaign for Mr Sunak, the former chancellor, said his 137 votes were a "really strong result with a clear mandate from MPs".
A spokesperson said he would "protect the Union and seize the opportunities of Brexit" and was best-placed to beat Labour in an election.
Tory MP George Freeman, a backer of Trade Minister Ms Mordaunt, said she had come "from nowhere to fight a great campaign".
"We have lit a flame she is not going away," he added.