Vic timber mill gets offer to save jobs

The Victorian government is willing to take an "interventionist approach" to save the beleaguered Heyfield timber mill and the jobs of more than 200 employees.

A government source told AAP on Thursday night following a meeting of the Australian Sustainable Hardwoods board that the government was committed to keeping the mill - the country's largest - open.

The source said Premier Daniel Andrews had flagged that if ASH walked away from the mill, the government would do what was necessary to save jobs, even taking it over or helping secure another buyer.

The mill is slated for closure due to it being unable to reach an agreement with timber supplier, state-owned logging company VicForests.

Employees are expected to discover their fate on Friday afternoon, with an announcement to follow shortly after.

"We have been given an offer and we will be considering it at the board meeting late this afternoon," Australian Sustainable Hardwood CEO Vince Hurley told AAP on Thursday.

Mr Andrews told reporters protecting jobs was a priority.

"I understand how important these jobs are and we're going to do everything we can to make sure that mill has got a strong future," he said.