Luxon has led New Zealand since 2023 but has been unable to reverse his party’s slide in the polls, surviving a prior confidence vote in April.
He called the emergency meeting on Tuesday after media reported growing speculation that his leadership was no longer tenable.
Following hours of closed-door talks with party grandees, Luxon said he had secured their backing.
“There was a confidence vote in my leadership this morning at our caucus meeting, and I have the full support of our caucus,” he told journalists.
“Our caucus is united, and it is determined to win this election,” he said.
Wednesday’s was the second challenge to his leadership this year.
In April, Luxon made it through a vote after reports National members were displeased with the party polling under 30 percent.
The former Air New Zealand boss led the centre-right party to election victory in 2023 vowing to tame inflation and bring down interest rates.
The teetotal millionaire touted himself as a master negotiator from previous business experience.
But it took over six weeks for him to broker a three-way coalition government with populist New Zealand First and right-wing libertarian ACT, a marriage of convenience he has struggled to manage throughout his premiership.
His political savvy became a long-running concern with a series of gaffes and miscommunication, and his inability to rein in coalition partners hurt his popularity.
An example came when foreign minister and New Zealand First leader Winston Peters sparked an international incident last month, telling a Chinese-born lawmaker during a parliamentary debate to “go back to your own country” where “they lie like flatfish”.
Beijing complained about the comments and while Luxon condemned them as offensive and racist, he did not sanction his coalition partner. (AFP)