Malta has a new prime minister following the resignation of Joseph Muscat, the latest twist in the fallout from the assassination or renowned blogger Daphne Caruana Galizia, the Guardian newspaper has reported.

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Robert Abela, a man seen as an outsider, has been elected as the leader of the governing Labour Party automatically making him the prime minister.

"The important thing now is to pull the same rope. This is not a victory for me, nor is it a loss to the other candidate. It is a win for the Labour Party," Rabela said after emerging victorious as quoted by Malta Today.

Muscat announced last year that he would step down once the Labour Party found a replacement to him.

Muscat is seen as a casualty of the high profile investigation into that murder of Caruana Galizia, who lost her life after an explosive device in his car was detonated.

Member's of Muscat's administration, including his chief of staff, were implicated in the assassination.

Before her death, the blogger had exposed corruption in the highest levels of government even going as far as mentioning the names of corrupt individuals.

A number of arrests have been made as investigations continue.

 Billionaire businessman Yorgen Fenech who is said to have played a part in the assassination plot, is in police custody over the murder.