Announcing a preferred route for the Melbourne Metro Rail project on Thursday morning, Mr Andrews revealed he had a "very productive" phone conversation with Mr Abbott about alternative infrastructure projects, saying he was "really confident" he would get a good outcome from the Prime Minister.

"The last thing I want to do ... is dud the people of Victoria. Daniel Andrews dudded the people of Victoria yesterday by not going ahead with this vital piece of infrastructure. I'm happy to keep talking to the Victorian government about other infrastructure projects of national significance but the problem with the only one he has mentioned so far [the Metro Rail Project] is that it won't start for three years."

Mr Abbott said the decision to dump the road project was "absolutely crazy", although he promised not to "dud" Victorians by denying the state funding for other projects.

"I think the Andrews government might be dead but I think the East West Link project is necessary," Mr Abbott said. "Absolutely necessary because Melbourne needs a second crossing."

Despite the demise of the contract, Mr Abbott said the money would remain in a "locked box", remaining adamant the road should still be built as a congestion-busting project for Melbourne.

"Mr Abbott says he wants to be an infrastructure prime minister, well we've got lots of things we want to build and let's get on with," Mr Andrews said.

Labor announced it would not go ahead with the project in September last year, several weeks before the Coalition attempted to lock in the deal by guaranteeing a large payout for the consortium if the project were dumped.

The Labor government, which has agreed to take over $339 million of costs incurred by the consortium and $81 million worth of fees for a project loan facility, has attempted to sheet blame back to the Coalition, accusing it of introducing a "poison pill" financial clause as an act of political sabotage. It has since highlighted the Coalition's own early analysis showing the project would have returned a loss-making 45 cents for every $1 invested.

Mr Abbott said motorists stuck in traffic around Melbourne would also refuse to accept the project is dead.

"I say to the people who are stuck in traffic jams every morning, every evening most weekends in Hoddle Street, Flemington Road, Alexandra Parade, do you think East West Link is dead? Of course you don't because you know that all vehicles need to get moving and the only way to get your vehicles moving to save you time, to cut out 23 sets of traffic lights, to save you 20 minutes - that's just with stage one of East West Link, is to get this road built."