A piece of Melbourne's history is up for sale and it can be yours for the bargain price of just $1,000.

There are 237 trams enjoying their retirement at the Newport Railway Workshops and 134 of these will be put up for sale.

The price is set at $1,000 for private buyers and businesses, plus the cost of transport and relocation.

But VicTrack spokesman James O'Brien said these Melbourne icons would be free for not-for-profit groups including schools and local governments.

"We'll be covering the cost of those and the transport and relocation cost," he said.

Iconic W Class trams are among those being sold to the public. ( Supplied: VicTrack )

Potential tram owners will have to explain how they would restore, repurpose and maintain the trams as part of the expression of interest process.

"There's been lots and lots of interest over the years from Victorians wanting to acquire a retired tram," Mr O'Brien said.

"We've already had historically hundreds of people contact us and say, 'When you are thinking about selling these, let us know'.

"We're expecting to get lots and lots of applications."

A converted tram being used by students at Fitzroy High School. ( Supplied: VicTrack )

An independent panel will be set up to assess the applications.

They will look for applicants whose plans demonstrate the best community use.

"If you can demonstrate to us that your tram will be on display once you own it, that will have a higher weighting during the assessment process," Mr O'Brien said.

"A tram is not just for Christmas, a tram is well and truly for life."

This repurposed tram is being used by an organisation called Hands On Learning. ( Supplied: VicTrack )

Public Transport Minister Jacinta Allan said the retired trams had transported millions of Victorians during their working lives.

"If they're not going to be used on the network, we want to keep these trams accessible to the community," she said.

"These Victorian icons will now be available to come to life once again and preserved for future generations to enjoy."

There are some great examples of trams being repurposed for various uses including as cafes and classrooms.

Not-for-profit group Hands On Learning has repurposed one tram which is being used at Fitzroy High School.

The expression of interest process will be open from May 28 to July 6.