Keep defence jobs local: Victorian premier

New defence contracts should have local content requirements to keep jobs in Australia, Victoria's premier says.

Daniel Andrews says he is encouraged by recent talks with the federal government about keeping shipbuilding jobs in the country.

"We're making a strong case around shipbuilding, and I think the prime minister understands just how important these shipbuilding jobs are," Mr Andrews told reporters on Thursday.

He said a tender process under way to build two supply ships had cut out Australian companies.

"I hope there can be some local content requirements embedded in that tender, and firms like BAE and others can get a share of that work," the premier said.

Melbourne shipbuilder BAE Systems has warned it will make hundreds of workers redundant if the federal government makes no more navy-related orders.

Last June, the Abbott government decided to proceed with a limited tender for new supply ships to replace the ageing HMAS Success and HMAS Sirius - but only a company from Spain and one from South Korea could bid.