Police to closely monitor Melbourne rally

Victoria police will be closely monitoring an anti-racism rally in Melbourne's CBD.

Anti-racism campaigners will gather in Federation Square at 2pm on Sunday afternoon to protest the far right-wing United Patriots Front, who earlier had announced a rally would be held to mark the anniversary of an anti-Muslim rally they held last year.

The UPF reportedly dropped their plans for a rally after hearing anti-racism campaigners would be in attendance.

The UPF unveiled a "Stop the mosques" banner at the Collingwood AFL game on Friday night, sparking strong condemnation from the AFL, the club and political figures, including Foreign Minister Julie Bishop.

Victoria Police said it respected the right of people to express their views peacefully and lawfully, but will not tolerate people breaking the law.

They will closely monitor the rally, they said.