Melbourne's long-awaited Mordialloc Bypass should be built by mid-2023 under a $300 million plan unveiled in the Victorian budget, the Roads Minister says.

Key points: New road will link the Mornington Peninsula Freeway and the Dingley Bypass

New road will link the Mornington Peninsula Freeway and the Dingley Bypass Project is due to be completed by 2023

Project is due to be completed by 2023 VicRoads identified need for a bypass in the 1960s

The new road includes a nine-kilometre section linking the end of the Mornington Peninsula Freeway to the Dingley Bypass.

Work will be scheduled to start in 2019.

The Opposition promised the road ahead of the 2014 election, and said the Government was delivering too late.

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Roads Minister Luke Donnellan said VicRoads identified the need for a bypass in the 1960s and created a road reservation, so the Government would not need to compulsorily acquire residential land.

"There will be finalisation of the business case and also environmental approvals before we can actually start construction," he said.

"So this $300 million will be set aside until 2019 when it will be released under a request for tender."

Mr Donnellan said the new road would ease congestion for commuters.

"This is very much about linking those employment precincts and that growth in terms of where people live," he said.

"Making it easier to get to work in a more reliable way … [for] those employed in precincts like Dandenong, Monash, Mordialloc, the Moorabbin Airport."

He said any environmental issues would be worked through with the Department of Planning and Environment.

Opposition spokesman Michael O'Brien said he did not believe enough funding had been set aside for the road and it had taken the Government too long.

"We went to the 2014 election saying this needed to be done and we had the money to build it," he said.

"I suppose better late than never, but the fact is there are people who are still stuck in traffic and this project could have been three years underway if Daniel Andrews hadn't sat on his hands."