Controversial Victorian Liberal MP Moira Deeming has survived a bid to expel her – instead striking a compromise deal involving her temporary suspension.

Ms Deeming will be suspended from the Liberal Party room for nine months, and has lost her position as a whip.

But Monday’s result, which came after a marathon two-hour meeting of the Victorian Liberal caucus, is a blow to Opposition Leader John Pesutto.

He had pushed for Ms Deeming to be booted from the parliamentary Liberal Party for “organising, promoting and attending” the Let Women Speak protest on the steps of the Victorian parliament. But he did not have the numbers in the party room when it came to the vote on Monday.

The Melbourne rally earlier this month was organised by British anti-trans activist Kellie-Jay Keen-Minshull and attended by neo-Nazis who repeatedly performed the Nazi salute.

It sparked community outrage and a commitment from the Victorian government to fast-track a ban on the gesture.

Mr Pesutto – who described Monday’s meeting as “very lengthy and emotional” – said new information had changed his view of Ms Deeming’s attendance at the rally.

“The conduct I wanted condemned has been condemned,” he said.

“These are serious consequences. So I was satisfied with the condemnation, which was the most important thing … It would be different if there we no concessions from Moira.”

Mr Pesutto had accused Ms Deeming of bringing “discredit” to the party over her association with rally figures with alleged links to extremists and failing to leave the event when neo-Nazis showed up.

The upper house MP had categorically denied she or organisers of the rally did anything wrong and labelled condemnation from party leadership unjust.

Deputy Opposition Leader David Southwick said earlier it had been a difficult week for the Victorian Liberals.

“This has been really disturbing, certainly for a lot of us, but at the end of the day we need to do what Victorians expect and that is to ensure that we focus on the things that matter the most,” Mr Southwick said on Sunday.

“Tomorrow certainly that will be the decision for the party room but after tomorrow I can assure you that we will all be doing what Victorians expect.”

Ms Deeming had some support within caucus, with 11 last week voting in favour of an unsuccessful motion to indefinitely delay the push to expel her.

Warrandyte MP Ryan Smith said some Liberals were uncomfortable with the idea of expelling Ms Deeming and he wasn’t convinced of the move based on a 15-page dossier.

The Liberals deputy upper house leader Matt Bach, who co-signed the expulsion motion, said there could be no compromise.

“We support John and we support that motion,” he said last Thursday, amid a report of Liberal MPs campaigning for alternative sanctions such as a suspension, fine or apology letter.

“I’m confident that a majority of my colleagues will support it.”

Veteran Liberal MP David Davis said Mr Pesutto had done the right thing by moving the motion and would back it.

Mr Pesutto had refused to entertain whether he would step down if he lost Monday’s vote.

-with AAP