Independent federal MP Kerryn Phelps has conceded defeat in the high-profile Sydney seat of Wentworth following a closely fought race with the Liberal Party’s Dave Sharma.

The race for the blue-ribbon seat had been neck and neck since Saturday night but Dr Phelps conceded at midday on Monday.

She congratulated Mr Sharma on his victory, which means the electorate returns to the Liberals following its loss in the by-election brought on by former prime minister Malcolm Turnbull’s resignation last year.

“It’s been an enormous privilege to serve in Wentworth,” she told reporters while flanked by a group of her campaign volunteers.

“I wish Dave Sharma very well in his new role.”

.@DaveSharma: I want to reflect on and acknowledge @TurnbullMalcolm, who held this seat for 14 years and was a very popular and liked local member.

MORE: https://t.co/96H55MnCjY #SkyLiveNow pic.twitter.com/bBC15oD6jV

— Sky News Australia (@SkyNewsAust) May 20, 2019

Mr Turnbull was one of the first to express good wishes to the newly-elected representative for his Sydney electorate – “the best part of the best country in the world”.

“Good luck in the years ahead,” Mr Turnbull tweeted.

He also had some words for Dr Phelps:

“Thank you for the great courage and character you showed as our MP,” he wrote.

Mr Sharma has 51.7 per cent of the vote on a two-party preferred basis while Dr Phelps has 48.3 per cent, with about 77 per cent of the ballots counted.

-with AAP