Fresh divisions have emerged within the Victorian Liberal Party after Opposition Leader Jess Wilson declined to meet with upper house MP Moira Deeming, as senior party members continue discussing possible disciplinary action over the controversy surrounding Deeming's allegations against former Liberal leader Matthew Guy.

The latest developments follow Victoria Police's decision to end its investigation into Deeming's complaint against Guy after determining that no criminal offence had occurred. The investigation centred on an interaction between the two MPs at a community event earlier this year, where Deeming alleged Guy had assaulted her. CCTV footage reviewed by police did not support claims of a violent assault, and the investigation concluded without charges being laid.

Following the police findings, Wilson publicly called on Deeming to apologise to Guy for the allegations. Deeming has refused, maintaining that she reported the incident honestly and in good faith based on her personal experience of the encounter. Through her legal representatives, she has said she misunderstood the technical meaning of the term "headlock" but continues to stand by her account that the physical contact caused her distress.

According to reports, Wilson has no plans to hold a private meeting with Deeming while internal discussions continue. Senior Liberal MPs are understood to be considering whether additional disciplinary measures should be taken, including possible moves to remove Deeming from the parliamentary party room or impose other sanctions. No final decision has been announced.

The dispute has reignited tensions within the Victorian Liberal Party only months before the state election. Wilson has attempted to present the opposition as disciplined and focused on issues affecting voters, but the ongoing internal conflict has overshadowed the party's campaign and diverted attention away from policy announcements. Political observers say the latest controversy risks undermining the party's efforts to present itself as an alternative government.

Deeming has criticised the way party leaders have handled the dispute, claiming she received little support after making her complaint. She has also expressed frustration that mediation efforts within the party were unsuccessful and says she felt compelled to report the matter to police after internal processes failed to resolve the issue.

Matthew Guy has consistently denied any wrongdoing and has welcomed the outcome of the police investigation. He has sought public apologies from Deeming and others who commented on the allegations, arguing that the claims caused significant damage to his reputation and personal life.

The Liberal Party has not confirmed what action, if any, will be taken against Deeming. Party officials say discussions are continuing behind closed doors as they seek to resolve the dispute while avoiding further damage ahead of the November election. Wilson has indicated the matter will be dealt with internally rather than through public debate.

As the party weighs its next steps, the controversy remains one of the biggest internal challenges facing the Victorian Liberals during the election campaign, with both supporters and critics closely watching whether reconciliation or further disciplinary action will follow.