A new law that would restrict the movement of potential jihadists and ban them from using the internet in a bid to steer them away from extremism is being considered by the Victorian Government.

Under the proposal from Victoria Police, counterterrorism officers would be able to apply for Community Protection Intervention Orders (CPIOs) for anyone deemed to have been radicalised, even if they were not planning an attack or preparing to fight overseas.

People under CPIOs could be banned from using the internet, face restrictions on their movements and associates, live under curfews and be forced to enrol in de-radicalisation programs.

Victorian Attorney-General Martin Pakula said the bold move was aimed at young people at risk.

"If there are young people on the edge of radicalisation, it's important that measures are put in place to try to nip that in the bud," he said.

"It really is a proposal which is primarily about prevention and about ensuring young people at risk of being radicalised can be dealt with prior to things getting completely out of hand."

Mr Pakula said the orders, which would be similar to existing intervention orders, would likely be sought in the Magistrates Court.

Currently, terrorism suspects can be held without charge on secretive Preventative Detention Orders (PDOs) if there is an imminent threat of attack.

Victorian police used a PDO for the first time in April, when they held a teenager allegedly involved in an Islamic State-inspired terror plot to strike on Anzac Day in Melbourne.

Mr Pakula said he did not believe the proposed legislation would erode people's civil liberties.

"Ultimately if it's a matter for the courts and it's a matter decided on the evidence, then I think that's something people should be relaxed about," he said.

Fears law could do 'more harm than good' for young Muslims

Islamic Council of Victoria spokesman Kuranda Seyit said police and politicians must be careful not to drive young people further towards violent extremism.

"The main concern here is about how to assess somebody and not drive that young person into being further isolated," he said.

"These are the issues that we need to be very, very careful about."

Human rights lawyer Julian Burnside QC said the proposed legislation could do as much harm as good.

"If you pick on any group for long enough you will radicalise some of them, and the fact is that Muslims have been picked on relentlessly," he said.

"The problem with measures like this is that the message it sends is that all Muslims are potentially dangerous."

Mr Burnside said the courts would be likely to err on the side of caution in issuing CPIOs.

"Orders like this are likely to be seen as much easier to get [than PDOs] so they'll be applied for frequently, and the main reason they will be applied for is because the subject is a Muslim and that is going to radicalise some people for sure," he said.

The Department of Justice and Regulation is examining the proposed legislation as part of the response to the recommendations of the review of Sydney's Martin Place siege.

Mr Pakula said the Federal Government wanted legislative consistency among the states and territories.

'When you're talking about countering violent extremism or organised crime, it's always preferable to have the greatest degree of national consistency as possible," he said.

Victoria Police would not comment on its proposal.