The Victorian Government has released a draft plan for a new suburb to be developed in Melbourne's inner north over the next three decades.

Key points: Area expected to house 15,000, be home to 34,000 jobs

Area expected to house 15,000, be home to 34,000 jobs New train station part of Metro Rail project in heart of suburb

New train station part of Metro Rail project in heart of suburb Area will not be dominated by skyscrapers, Planning Minister says

The new 56-hectare Arden precinct, in north Melbourne, is expected to house up to 15,000 people and be home to 34,000 jobs.

Planning Minister Richard Wynne said the precinct would be based around the Arden rail station, an underground station planned as part of the Metro Rail tunnel project.

He said the Metro Rail project represented a unique opportunity to redevelop the precinct.

"No other state government has got a parcel of land held in public ownership on the doorstep of the city that's got such opportunities for development with a major urban transport link underneath it," Mr Wynne said.

"This is a unique opportunity and one that we are going to seize."

Planning Minister rules out 'very, very high' skyscrapers

Mr Wynne said there would be a mix of housing in the precinct, but it would not be dominated by skyscraper towers.

"It is important that we get densities around [what] a major transport hub like the Arden precinct is going to be," he said.

"We haven't pre-determined [height limits]. Heights somewhere between 12 to 15 storeys is what's been envisaged by the city and ourselves.

"We're not looking at very, very high skyscrapers, no."

Arden set to be a transport hub, State Government says. ( Victorian Planning Authority )

Public Transport Minister Jacinta Allan said the release of the draft plan was timed to coincide with works on the Metro Rail tunnel.

"It comes at the same time that we're moving rapidly towards the major construction phase for the Metro Rail tunnel project," she said.

"And so we're wanting to make sure we have in sequence the work being done on the construction of the tunnel and the underground stations.

"At the same time we will have the planning work undertaken and finalised so we can move very quickly on the development opportunities that will come as the project gets underway."

Melbourne Lord Mayor Robert Doyle said the draft plan was important to make sure the Government and council did not repeat the mistakes of the past in other urban renewal projects.

"We're now having to retrofit community infrastructure into Docklands," he said.

"Southbank is now our dense suburb, but again it wasn't created as a residential suburb [and we] have to do work around City Road to make that more residential-friendly and provide more open space in Southbank.

"They're the sort of things where probably development got ahead of our game plan and we are retrofitting now to try to make up for that. This plan actually guarantees that it won't happen in Arden."

The plan is open for public comment.