Turnbull announces Monash Freeway upgrade as part of $1.5 billion Victorian infrastructure plan

Federal funding earmarked for Victoria's East West Link is being unlocked by the Turnbull government.

The $1.5 billion will partly go towards widening the Monash Freeway, which Prime Minister Malcolm Turnbull hopes will be jointly funded by the state government.

Mr Turnbull has written to Victorian Premier Daniel Andrews nominating a list of alternative projects that could be funded with money allocated for the dumped East West Link.

Improving freight rail lines in rural Victoria and upgrading the M80 Western and Metropolitan ring roads are on the list with $10 million set aside for planning and development on the Melbourne Metro.

Mr Turnbull made the announcement in Melbourne today.

"[This is a] plan that will see one and a half billion dollars invested in the roads and the rail that will ensure that Victorians are able to get to work, and get to school, without spending hour after hour of frustrating delay in traffic jams," he told reporters.

Victorian Treasurer Tim Pallas said the announcement confirmed what the state believed for some time.

"We've always said the money would belong in Victoria for Victorian projects, I'm pleased to see the commonwealth government has confirmed that now," Mr Pallas told 3AW.

But he said despite the money, Victoria only got nine per cent of federal infrastructure funding, compared to NSW's 36 per cent.

"We're still a very long way short of the mark, but it's a good first step," Mr Pallas said.

He ruled out building the East West Link, which Labor dumped at a cost of $1.1 billion.

"East West Link will not be built by this government," he said.

With AAP.