Labor has conceded defeat in the seat of Melbourne, confirming victory for Ellen Sandell who will become the first Greens representative in the lower house.

Ousted MP Jennifer Kanis made a statement on her Facebook page on Tuesday afternoon, saying that Melbourne "would not be a part of the change" which had swept Labor to power in Victoria.

The Greens' Ellen Sandell has won the seat of Melbourne in a tight race with Labor. Credit:Joe Armao

Despite the Greens claiming victory on election night, Labor held out hope that Ms Kanis might be able to cling on to her seat when pre-poll and postal votes were counted.

Initial counting of early votes showed Ms Sandell's lead had indeed been whittled away to 300 votes, however that turnaround did not last. By Tuesday afternoon, Ms Kanis was behind by 681 votes.