Former minister for Home Affairs Peter Dutton leaves after a news conference to announce he has the numbers to challenge Prime Minister Malcolm Turnbull at Parliament House in Canberra, Australia, August 23, 2018. AAP/Mick Tsikas/via REUTERS

SYDNEY (Reuters) - Peter Dutton, an Australian lawmaker whose challenge set off a leadership battle against Prime Minister Malcolm Turnbull this week, can remain in parliament, a senior legal official looking into a potential financial conflict said on Friday.

Turnbull asked the government’s most senior legal adviser on Thursday to provide guidance on whether Dutton - who has financial interests in daycare centers that receive government funding - is eligible to remain in parliament. Australia’s constitution bans lawmakers from benefiting from state funds.

Australia’s solicitor-general concluded Dutton is “not incapable’ of sitting as a member of the House of Representatives”, the lower house of parliament, the ruling seen by Reuters said.