Controversial Victorian Liberal MP Moira Deeming has been thrown a lifeline after the rival she lost preselection to withdrew his candidacy.

Ms Deeming, who was expelled from the parliamentary Liberal Party, lost a preselection ballot on Sunday to businessman Dinesh Gourisetty, eight months out from the state election.

The prospect of losing preselection threatened Ms Deeming’s political career, leaving her the choice to run for another party or as an independent.

But on Monday, Mr Gourisetty withdrew his candidacy.

The resignation allows Ms Deeming to contest the November election as a Victorian Liberal MP.

The Australian reports, it emerged after preselection, that Mr Gourisetty provided a character reference for a man who was ultimately convicted of child sex offences.

Pedophile Kashyap Patel was a Liberal factional ally of Mr Gourisetty, and pleaded guilty to charges of grooming, sexually assaulting and transmitting indecent communication to a child under 16.

Patel was sentenced to nine months’ prison and a two year community correction order in 2024.

After the preselection result – and before Mr Gourisetty withdrew his candidacy – Mr Pesutto’s chief of staff and former Liberal MP Louise Staley posted a picture of a frowning Ms Deeming, plastered with the words “Happy Days”, with Lily Allen’s song “F**k You” playing.

The post has since been deleted.

Mr Gourisetty’s character reference for Patel came to light after the preselection vote, and on the face of it, the end of Ms Deeming’s political career in the Liberal Party.

Former Liberal leader and state Opposition Leader, John Pesutto, was found by a court to have defamed Ms Deeming in 2023, by conveying she “knowingly associated, or sympathised, with neo-Nazis and white supremacists”.

Before their courtroom showdown, Ms Deeming’s threats to sue Mr Pesutto over his comments led to her being suspended and then booted from the parliamentary party room.

She retained her membership in the broader Liberal Party.

The courts ultimately found Mr Pesutto defamed Ms Deeming, ordering a $300,000 damages payment and a legal costs bill of $2.3m.

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