Aust spy agencies may have role in parole

A Victorian government plan to allow Australian spy agencies to veto whether terror suspects in prison get parole will be taken to the COAG meeting on Friday.

Premier Daniel Andrews wants ASIO and the Australian Federal Police to have a say on whether terror suspects in prison should get paroled.

It comes after Monday's siege in Melbourne where Yacqub Khayre killed an innocent man, held a woman hostage and shot three police officers before dying in a hail of bullets.

The Victorian parole board says it should have been told Khayre was on a terror watch list before it let the soon-to-be killer free from prison.

However, Prime Minister Malcolm Turnbull says Victoria was trying to abdicate its responsibility, and state attorneys-general should sign off on terror watch list parolees.