The Victorian government has intervened to save the Overland train, committing to fully fund the link between Melbourne and Adelaide for at least another 12 months.

The Overland train has been saved for at least another year. (9NEWS)

There were fears South Australia’s decision to withdraw a $300,000 annual subsidy would result in the suspension of services at the end of this month.

The train has run in one form or another since 1887, connecting Melbourne with Adelaide via Geelong, Ararat, Stawell, Horsham, Dimboola, Nhill, Bordertown and Murray Bridge.

Victorian Public Transport Minister Melissa Horne today confirmed the state government would meet the $3.78 million cost of funding the train for the next 12 months.

“We will put up the money required to keep the service running, and continue to work with stakeholders,” Ms Horne said.

“It’s an absolute disgrace the Liberal government in South Australia wouldn’t come to the party”.

The train has run since 1887. (9NEWS)

The train currently runs just twice a week in each direction, carrying about 17,000 passengers each year.

South Australian Premier Steven Marshall defended his government’s decision to end the subsidy.

“I think the best thing that people can do, if they want to support the Overland trip staying in place, is get on the Overland, use the service, then it wouldn’t been needing such large state taxpayer funds,” Mr Marshall said.

Victorian taxpayers will spend $3.78 million to keep the train on the rails.

The Overland carries about 17,000 passengers each year. (9NEWS)

Operator Great Southern Rail said it would absorb a further $130,000 in operational costs to ensure the service continued to operate.

It has also committed to a full review of the Overland to explore its long-term sustainability.

Bookings for 2019 will open tomorrow (December 12).