Twenty-eight MPs filed into Victorian parliament on Friday morning and met for just over an hour to thrash out a motion calling for Mrs Deeming's re-entry to the Liberals' caucus.
She needed 15 votes to be welcomed back but fell one short of that, with 14 MPs voting against her including party leader John Pesutto who cast the deciding vote.
The now-independent MP was expelled in the wake of a controversial political rally in Melbourne gatecrashed by alleged neo Nazis.
John Pesutto said there would be no consequences for members who vote to allow Mrs Deeming's return. (Joel Carrett/AAP PHOTOS)
The motion was signed by Benambra MP Bill Tilley, opposition emergency services spokesman Richard Riordan and first-term backbenchers Renee Heath, Joe McCracken and Chris Crewther.
The rebel group said they wanted to give their colleagues a chance to "do the right thing" after the Federal Court found Mr Pesutto defamed her and ordered he pay $315,632 in damages.
Mr Pesutto entered the room flanked by his leadership team of David Southwick, Georgie Crozier and Evan Mulholland on Friday.
The opposition leader has refused to resign and called for the party to "move on", before Sam Groth quit shadow cabinet.
Mr Pesutto was found to have made defamatory comments implying Mrs Deeming was associated with Nazis, in media interviews and a party expulsion motion following a March 2023 rally she attended.
She was expelled from the parliamentary Liberal party after the march, sitting in parliament as an independent MP.
Mr Pesutto was ordered to pay Mrs Deeming's yet-to-be-determined legal costs on Thursday and has given the court an undertaking not to repeat or republish the statements that got him in hot water.
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