Controversial state Liberal MP Moira Deeming has withdrawn a court challenge against her own party as she mounts a last-ditch bid to retain her candidacy.

Deeming launched an eleventh-hour Supreme Court challenge against Victorian Liberal Party president Brian Loughnane two weeks ago, after making an unsubstantiated assault allegation against former leader Matthew Guy.

Late on Wednesday, Deeming said she had withdrawn the case.

“The injunction has achieved exactly what it intended to achieve,” she wrote in a statement posted to social media.

The MP, who sits in the upper house for the Western Metropolitan Region, faces being disendorsed as a candidate ahead November’s state election.

On Wednesday, Deeming sent a 12-page statement to the Liberal Party’s state executive, providing a mediation proposal that allowed her to end the Supreme Court action.

“The state executive, having all the evidence before them, can now decide whether to pursue medication or reconvene to disendorse me,” she said.

“From beginning to end, I progressed the issue in good faith, respected the confidentiality of all involved, submitted myself to the instructions and policies of the party and obeyed the law rather than run it through the media.

“For my part, I will continue doing my work serving Victorians and fighting Labor.”

Vision from a function in May showed Guy placing his hand on Deeming’s upper back as they lean in to talk to one another. Police reviewed the CCTV and found no offence was committed.

Deeming had accused Guy of grabbing her “violently” in a headlock, but since claimed she misunderstood the meaning of headlock.

“Having been overseas and unwell when the story broke and jet-lagged and unwell when the disendorsement meeting was called, the injunction gave me time to recover, review all the facts, learn the difference between a headlock and a collar-tie grip, and gather my thoughts,” she later said.

Guy said in June that Deeming owed him a public apology, adding he vehemently denied that anything untoward had happened.

“Moira Deeming owes me a public apology. I’m owed an apology by the premier and the attorney-general,” he said in a statement outside parliament.

“They can come to me the honourable and easy way, or a harder way.”

Liberal Leader Jess Wilson would not comment on Deeming’s future on Wednesday as the matter was “before the courts”.

-AAP