A virtual federal intervention into the affairs of the Victorian Liberals has been flagged as a critical measure to reverse the party’s fortunes in the state, attract new members and volunteers and help the Coalition retain power.

A review into Scott Morrison's shock federal election victory in May has warned the Coalition's future chances of forming government will remain "worryingly narrow" unless it improves its standing in Melbourne and across the state.

Scott Morrison greets the faithful in Melbourne during the election campaign. Credit:Dominic Lorrimer

It warns there is "no room for any complacency" within the party after the campaign, recommending a "comprehensive, impartial candidate-vetting process" to avoid a repeat of a situation which saw 10 Liberals disendorsed nationwide.

"Unless the party rebuilds and recovers lost ground in Melbourne and surrounding areas, its path to victory in each election will remain worryingly narrow," the review says.