Treasurer Joe Hockey has hit back at suggestions that up to $3 billion of federal cash earmarked for the East West Link is set to be diverted to the state government's level-crossing removal program.

Mr Hockey was on Wednesday adamant the Commonwealth money, including $1.5 billion already provided, was for building the East West Link only.

Federal Treasurer Joe Hockey. Credit:Graham Denholm

It follows a meeting between Mr Hockey and his Victorian counterpart, Tim Pallas, on Monday to discuss infrastructure funding.

Mr Pallas appeared to confirm that discussions were underway to redirect the total $3 billion into the level-crossing removal program, describing his Monday meeting with Mr Hockey as "wonderful", with "a lot of love in the room".