DARTMOUTH, N.S. - Annapolis MLA Stephen McNeil won the Nova Scotia Liberal leadership today in a tight battle with caucus colleague Diana Whalen.

Whalen appeared to have the momentum in the race after picking up the support of the two other contenders, Colchester County Mayor Mike Smith and Halifax lawyer Kenzie MacKinnon, but it wasn't enough to secure victory for the MLA from Halifax-Clayton Park.

McNeil had led after the first ballot and looked like he was in a commanding position until MacKinnon, who was automatically knocked off after finishing fourth, backed Whalen.

The momentum then appeared to be shifting solidly to Whalen as Smith decided he would cross the floor of the Dartmouth Sportsplex to join the Halifax-area MLA, but Whalen fell short.

McNeil received the support of 718 delegates on the second ballot to 650 for Whalen.

The Liberal party's fortunes have been in decline in Nova Scotia since the minority government of Russell MacLellan was defeated in 1999.

The Liberals have chosen their third leader in five years after the resignation of Francis MacKenzie last year when he failed to win a seat in June's election.

The party won nine seats then and received 23 per cent of the popular vote -- a record low for the party.

McNeil basked in the victory, declaring the Liberals are back on the map.

"This truly has been a great campaign, and a rebirth of our party,'' McNeil told almost 1,400 cheering delegates inside the arena.

He also made a call for unity in the party.

"I want to say to Diana that it has been a privilege for me to work with you in the Nova Scotia legislature,'' said McNeil.

"I know that tomorrow we will begin our work together once again.''

McNeil praised Smith and MacKinnon as he urged them to seek seats in the legislature in the next election.

On the first ballot, McNeil had 571 votes to Whalen's 402, Smith had 255 votes and MacKinnnon 169.

Smith said he backed Whalen on the second ballot because he believed the time was right for a woman to lead the party.

"I love the idea of a female premier in Nova Scotia,'' said Smith. "I love the fact that she is smart and articulate and I am very impressed with her as a person.''