"I am happy to put this proposal before councillors at our first meeting if it is Victoria Police's recommendation, and they guarantee that they will enforce it," Mr Doyle was quoted as saying.

Homeless people at the camp near Flinders Street Station. Credit:Joe Armao

"Police already have powers to arrest for obstruction, for drug use, for threatening or aggressive behaviour, and for begging, and I would like to see them make full use of those powers as well.

"I welcome any move by police to bring an end to what has become a blight on our city, and the City of Melbourne continues to work with them to do that."

The News Corp report said the state government would hold a crisis meeting with police, Melbourne City Council and support groups on Monday.