Kevin Rudd is yet to make an official statement about the challenge as he flies back to Australia from the US

On Thursday morning in Washington, Australia’s foreign minister Kevin Rudd resigned from his position saying he had “no confidence” in the Prime Minister Julia Gillard and her senior ministers.

Before flying back to Australia Mr Rudd held a press conference saying he had had some "encouraging" conversations with supporters back home.

"Overnight, I had many conversations with members of Caucus and I must say I am pleased and encouraged by the support I have received," he said.

"They regard me as the best prospect to lead the Australian Labor Party successfully to the next elections, to save the Australian Labor Party at those elections and to save the country from the ravages of an Abbott government."

Less than an hour later the Prime Minister, held her own press conference where she announced that she would hold a leadership ballot at 10am on Monday to “once and for all” settle who would lead the ALP to the next election.

"I anticipate that Mr Rudd will also be a candidate in this ballot," she said.

"I ask him to give the same undertaking - that if he does not win this ballot that he will go to the backbench and renounce any further claims to the leadership and act in the interests of the Australian Labor Party and of our nation."

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