Michael O'Brien has been elected the new leader of the Victorian Liberal Party

Former treasurer, Michael O'Brien, has been elected new leader of the Victorian Liberal Party after their devastating loss in the recent state election.

The much-depleted opposition party voted on their new leadership team this morning with Cindy McLeish to take up reigns as deputy.

Matthew Guy's resignation was prompted by a sweeping Labor victory at the polls on November 24.

"This is a new day for the Liberal Party, this is a fresh start for the Liberal Party," Mr O'Brien told reporters.

"We've got work to do, we were sent a message at the ballot box, we've heard that message and we're going to work to make sure we are better."

Mr Guy refused to explain the party's drubbing or if he would stay in parliament.

"You can have a chat to the new leader, thanks everyone," he said as he walked into parliament for the party room ballot.

Liberal lower house representation has been slashed to just 20 seats, but Louise Staley was also in parliament today even though she appears to have lost Ripon to Labor by a the minuscule margin of 31 votes.