Australian Prime Minister Julia Gillard on Monday survived a leadership challenge from Kevin Rudd, trouncing the former leader in a damaging battle to head the ruling Labor party, media reported.

The nation's first female prime minister retained office after smashing Rudd 73-29 in a secret ballot of the 103-member Labor caucus, although only 102 votes were cast, Fairfax Media said.

Gillard called the vote in a bid to end a bitter row with her predecessor, whom she dumped as leader in 2010 in a shock party coup, and bring to a head a period of intense turmoil within Labor ahead of elections due in 2013.

Backbencher Michelle Rowland did not attend after giving birth last week and no absentee ballots were allowed.