Kemi Badenoch and Robert Jenrick will battle it out to be the next Tory leader after James Cleverly was voted out of the contest.
In a major shock, the former home secretary came last in the final ballot of Conservative MPs - despite comfortably topping yesterday’s poll.
The result means that whoever wins, the next Tory chief will be from the right wing of the party.
One former Tory cabinet minister told HuffPost UK: “What a duplicitous bunch our MPs are - too driven by stopping others rather than voting positively for any candidate.”
In the latest ballot, Badenoch came first with 42 votes, followed by Jenrick on 41, with Cleverly third on 37 votes.
He joins Tom Tugendhat, Mel Stride and Priti Patel in being rejected by their fellow MPs.
Cleverly said: “I’m grateful for the support I’ve received on this campaign from colleagues, party members and the public. Sadly it wasn’t to be.
“We are all Conservatives, and it’s important the Conservative Party unites to take on this catastrophic Labour government.”
Tory members have until October 31 to vote for who their preferred candidate, with the winner due to be announced on November 2.
Labour chair Ellie Reeves said: “After months of gaffes, wild unfunded policies and infighting, Tory members now have the unenviable task of choosing between two of the architects of Tory failure.
“Both Kemi Badenoch and Robert Jenrick are central figures in 14 years of hapless leadership and decline, and have already proven they’ve learned nothing from the mistakes that took the Conservative Party to its worst defeat in modern history.
“While the endless bickering continues, Labour is fixing the foundations and sorting out the mess that these two deeply unimpressive figures left behind.”
Liberal Democrat Cabinet Office spokesperson Sarah Olney said: “If this were an interview process they would’ve put the job advert up again.
“The best the Conservatives can come up with is a failed former minister who’d vote for Donald Trump and a failed former minister who thinks maternity pay is excessive.
“Whoever wins this election will be tainted by the Conservatives’ legacy in government for years to come.”