Moderate Liberals have expressed disappointment with the party formally opposing the referendum for the Indigenous voice.
Following a two-hour meeting in Canberra, the party agreed to support the constitutional recognition of Indigenous people, but not an enshrined voice to parliament and executive government.
Tasmanian MP Bridget Archer said there were few members of the party, including herself, who spoke out against the stance.
"I'm not really surprised. But I am disappointed. I think that this has been some time in the making. I think that nobody is probably going to be really too surprised about the decision that we have made today," she told reporters in Canberra.
"Today's decision is, whilst not surprising, it's also a day late and a dollar short and I will continue to work with what is being proposed and encourage Australians to move towards a 'yes' vote."
Opposition Leader Peter Dutton said he believed only "three or four" members of his party room would campaign for a 'yes' vote.
Mr Dutton said the Liberals did not support "the prime minister's Canberra voice", but rather wanted a legislated local and regional voice mechanism.
Backbenchers will be allowed to cross the floor on the issue.
Ms Archer described the party room meeting as "one-sided", and said the Liberals needed to come to terms with the consequences of the decision it had made.
"They have to try and find a way to reconcile that and to distance themselves from views that we will see, and have already started to see, in the context of a 'no' campaign that are divisive, and that are racist," she said.
Nationals leader David Littleproud said the party would still oppose any form of an Indigenous voice, but said it was likely the Nationals would support recognising Indigenous people in the constitution preamble.
"When you've got three political parties, basically, with different views, it's now important for the prime minister to ... lead this country in a direction that brings us together, not divides us," he told reporters in Toowoomba.
"In putting in place another layer of bureaucracy (for a voice), in adding another to the over 1000 indigenous representative bodies now, it is not a principle that my party room could accept."
Skills Minister Brendan O'Connor slammed the move from the opposition, describing the party as being on the wrong side of history.
"The Liberal Party has chosen the low road to reconciliation and consultation with our First Nations people," he said.
Liberal MP Keith Wolahan, said people went into the party meeting with good faith, but indicated he supported the party position.
"This was a momentous day for our party. No one pretended it was an easy decision and people went into that room with ... good heart for Indigenous Australians," he told Sky News.
Greens leader Adam Bandt said the opposition was offering nothing but division for the referendum.
"The rest of the country is starting to reckon with its past as we march towards a treaty, but Peter Dutton is trying to ignite a culture war," he said.
Member of the referendum working group on the voice Thomas Mayo said it was disappointing the Liberals chose to oppose the voice, but remained confident of the proposal's success.
"They've chosen to refuse us the fairness of a voice. I'm no less confident that we can succeed - it's the Australian people who will ultimately decide," he said.
