Scrapped East West Link compensation to be 'for costs only'

Compensation for the company contracted to build the scrapped East West Link tollway will be limited to costs incurred, the Victorian government says.

Premier Daniel Andrews has ruled out any payment covering the "super profits" indicated for an operating tollway.

"Our discussions are appropriately about costs incurred," Mr Andrews said.

"The notion that Victorian taxpayers ought to be paying out this consortium the super profits that (former premier) Dennis Napthine signed us all up to, just weeks before all Victorians voted - that is not acceptable to me."

There is media speculation the payout to the East West Connect consortium could reach $1.1 billion.

Mr Andrews would not put a time frame on the ongoing talks, and said a court challenge from councils against the project had been deferred while the talks were under way.

"I still hold the view that the contracts are not legally enforceable," Mr Andrews said.