State Liberals president Mal Brough said 85.8pc of members who took part voted in support of a merger with the Nationals in Queensland.

Mr Brough said 14.2pc voted against the proposal, while only 57pc of the Party's 5000-strong membership took part in the plebiscite.

The new party will be led by current State Nationals Leader Lawrence Springborg, while State Liberal Leader Mark McArdle will take on the role of deputy leader.

But moves for a national merger of the Liberal and National parties appear dim this side of the 2010 federal election.

The strong Nationals showing in Gippsland has reinforced the view that an early amalgamation is not on the cards.

The two parties are likely to reach an agreement soon for a unified party in Queensland, but there is little prospect for a merged party in Victoria and NSW and outright hostility to amalgamation in Western Australia.

While there is still the option of a merger of the parties at federal level, this becomes impractical if the parties remained separate in the major States.

Also, a merger of the federal parties would require the support of four divisions, which it would be unlikely to get.

Liberal federal president Alan Stockdale told The Age: "It is likely the merger will proceed in Queensland. At the moment there is no active discussion of a merger anywhere else."

The Nationals are awaiting the report of former party leader John Anderson, who is a supporter of merger.

But Nationals leader Warren Truss on Sunday predicted the merger would happen only in Queensland.

Meanwhile, Liberal candidates are jostling for preselection for the byelection that will follow the resignation of former Foreign Minister Alexander Downer in the South Australian seat of Mayo.

The Labor Party has flagged that it might not contest the seat, which is on a margin of about 7pc.

The candidates are expected to include two former staffers in the Howard government, Jamie Briggs and Matt Doman.

Mr Briggs joined the Howard staff after the 2004 election and lives in the electorate.

Mr Doman worked for the Nationals' Mark Vaile and the Liberals' Nick Minchin.

He unsuccessfully challenged sitting member for Barker, Patrick Secker, before the last election, and he is under pressure to try for that seat again.