Michael Welsh has been ousted as the leader of Lancashire County Hall's Tory group.
The veteran politician lost out in a group vote to Geoff Driver - who became victorious at the second attempt after he made a failed bid to take over last year.
Coun Driver, councillor for Preston North and a Preston City councillor, will assume i
mmediate control after winning the vote at the group's private annual meeting on Thursday.
Coun Welsh, who led Lancashire County Council's (LCC) Conservative group for five years, said it was time for him to move on.
He said: "I obviously congratulate Geoff Driver most warmly on his success and I am sure he will prove an outstanding leader of the group.
"I will certainly continue for the time being to represent the people of Preston North East.
"I shan't be trying to regain control of the group. That part of my career has finished.
"No-one likes to lose elections but that is a necessary feature of political life and it is probably time that this particular episode in my career came to an end."
LCC is the only local authority in Lancashire which is controlled outright by the Labour party, which has 43 seats on the council compared to 31 Conservatives.
But county council elections are due to be held next year, and if County Hall goes the same way as many local elections earlier this month, Coun Driver could find himself leading the entire council within a year.
Last May Coun Welsh, who became a member of the first directly-elected European Parliament in 1979, clung on to the group leadership by a single vote after he was challenged by Coun Driver.
At the time a source within the group, who asked not to be named, said: "There is deep division as to how we think we should play the role of opposition."
Coun Driver was not available for comment.
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