A local council has created controversy by asking non-Islamic women to wear hijabs in a 'social experiment' to increase awareness and education.

The City of Greater Dandenong Council in Victoria to wear the religious headdress for three hours today, as part of its plans to celebrate 'National Youth Week.'

The event, which will also be filmed, has been designed to 'provide awareness, insight and education' for the community.

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However, critics of the plan said it will create further division in the community, according to the Herald Sun.

'If we're going to have people dressing up as Muslims for three hours, why doesn't the council encourage people to dress up as Christians,' Institute of Public Affairs executive director John Roskam said.

Mr Roskam also said recent events prove that Christians are the most persecuted religious group in the world, not Muslims.

'This doesn't encourage integration, this encourages separateness. This is not what multicultural Australia is all about,' he said.

'What the council should be encouraging is allowing people from any walk of life and any religion to integrate.'

Islamic Friendship Association president Keysar Trad said the project would be attacked, but it was a way for people to positively engage with the Muslim community and gain a different perspective.

About 3000 people clashed at opposing protests in Melbourne between an anti-Islamic group and 'anti-racism' activists

The Greater Dandenong council has previously held public pool sessions for Muslim women.

The event follows ugly incidents last week that saw anti-Islamic protesters clash with anti-racism activists.

Police were forced separate Reclaim Australia supporters and opposing protesters by forming a wall at separate rallies in Melbourne.

A Federation Square spokesman estimated 3000 people went at it noisily for more than three hours. Two men and a woman were arrested during the protests. A small group of protesters burnt an Australian flag during the rally.

An Australian flag was burnt by anti-racism protesters in Melbourne

Police were forced to form a wall between the opposing groups at the Melbourne rally

About 200 people turned up at the rally in Sydney, which was held in the pouring rain in Martin Place.

A rally in Brisbane was attended by controversial One Nation leader Pauline Hanson, who declared she was not a racist and that 'criticism is not racism'. She told the crowd she is a proud Australian fighting for the country's democracy and way of life.