Premier Daniel Andrews was caught by surprise after the Turnbull government released $1.5 billion originally set aside for the scrapped East West Link project.

The premier said he had first learned the federal roads funding had been confirmed in a letter delivered at 10.41pm on Monday night.

Under the funding plan, which had been under negotiation, Canberra will unlock cash initially allocated for the dumped East West Link. It will now be directed to other road and freight projects.

"The money has always been held by Victoria," Mr Andrews said of the East West Link money. "It had been provided for a different purpose, for a botched project – one that just does not stack up."