Victorians will be able to instruct their doctors to not give them life-prolonging treatment for possible future illnesses, under a state government push to allow people to die with dignity.

As a condition of hospital funding, patients will now be encouraged to create ''advance care plans'' setting out the kind of medical care they would want in the event of illnesses such as dementia, cancer or brain damage.

The directives would give people a greater say on how they want to die - before they lose their decision-making capacity - and provide clinicians with guidance to implement their patients' wishes.

''It's about providing the support for people to make decisions they believe are important,'' said Health Minister David Davis. ''This is about their own steps, and to make choices ahead of time, where they could say: well this is a point where I would want certain treatment refused, or I want them continued. Either is relevant.''

At present, about 7 per cent of Australians are believed to have an advance care plan, but in Victoria, any refusal of treatment can apply only to a current illness, not a possible future problem. The government's strategy, to be announced on Sunday, will take into account future conditions, and will also be tied to hospital funding to ensure such plans are embedded into clinical practice.