Prime Minister Mark Carney's Liberal Party has won Canada's federal election, capping a stunning turnaround in fortunes fuelled by US President Donald Trump's annexation threats and trade war.

Opposition leader Sussan Ley and Nationals leader David Littleproud have resumed Coalition negotiations, postponing ministerial appointments to discuss policy demands.

Deputy leader Sussan Ley and shadow treasurer Angus Taylor have emerged as the two contenders to lead the Liberal Party after its devastating election defeat.

Federal Liberal Leader Peter Dutton has vowed to remain in the driver's seat and fight on after the party's historic by-election loss.

Several ministers are standing by NSW Premier Dominic Perrottet two months out from state elections after his revelation that he wore a Nazi uniform at his 21st birthday party.

MINERALS

Calls for ex-treasurer Josh Frydenberg to recontest his former seat and oust the female candidate have been labelled "crazy" by a senior woman in the party.

A "temporary" quota for women should be introduced by the Liberal Party, according to former minister Linda Reynolds.

A Liberal candidate has wrested an inner-city seat from the Greens in one of two state by-elections, as the other political contest remains too close to call.