Rishi Sunak is the new Prime Minister after his only rival Penny Mordaunt dropped out of the contest.
Mr Sunak – who quit as Chancellor under former PM Boris Johnson – had the backing of more than 190 Conservative MPs.
Ms Mordaunt had failed to reach the magic number of 100 supporters to go through to the next round.
If she had done it’s likely the Tory membership would have voted her into Number 10.
Mr Johnson dropped out of the race to Downing Street despite reaching 102 backers.
Mr Sunak is Britain’s first non-white PM and, aged 42, the youngest since 1812.
After stepping down Ms Mordaunt, The Commons Leader, said:
“It is clear that colleagues feel we need certainty today and that as a result, we have now chosen our next Prime Minister”.
“This decision is an historic one and shows, once again, the diversity and talent of our party.
“Rishi has my full support.”
Mr Johnson said continuing to try to return to Number 10 was “simply not the right thing to do”.
He said the party needed to “unite”.
Sir Graham Brady, the chairman of the 1922 Committee of Tory MPs, has confirmed that Rishi Sunak is the new leader of the Conservative Party.
He said: “As returning officer in the leadership election I can confirm that we have received one valid nomination.
“Rishi Sunak is therefore elected as leader of the Conservative Party.”
Mr Sunak could be installed as PM as early as tomorrow – or even tonight.