Homelessness groups say they can now focus on the services they provide with federal funding secured for another two years.

A funding agreement had been due to run out in June but Social Services Minister Scott Morrison has approved grants of $115 million a year.

Homelessness Australia's chief executive Glenda Stevens said she was pleased the money had been announced ahead of the May budget.

"This funding ensures that people who are the very vulnerable — including those who are sleeping rough, women and children in domestic violence situations and young people — can continue their care under services and actually new people can be taken into care," she said.

She said the minister indicated he wanted the focus to be on women and children escaping domestic violence as well as young people.

"We support both those areas but we are concerned that focusing solely on those two areas should not come at the expense of other groups such as rough sleepers and people leaving institutional care," she said.

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The chief executive of South Australian organisation Uniting Communities, Simon Schrapel, said it was important the Government acknowledged the link between homelessness and domestic violence.

But he said this renewed funding came in the wake of cuts to vital violence prevention services.

"We would certainly be asking the Commonwealth Government, given this commitment under the homelessness funding, to go back and revisit some of its decisions it made earlier this year to reduce some quite critical prevention programs in domestic violence," he said.

Dr Michael Coffey from the youth homelessness body Y-Foundations said the funding was needed, as 180 programs from the foundation directly relied on Government funds.

"There's lots of services and lots of workers out there doing really good work supporting homeless people, women and children escaping domestic violence, and young people who are homeless," he said.

Mr Morrison said the Government had extended the funding while a review was being undertaken into federal–state responsibilities.

"We have brought forward this announcement ahead of the May budget to give providers of homelessness services across Australia more certainty, enabling them to get on with their work of helping some of our most vulnerable people," he said.

"States and territories will now need to match the Commonwealth's commitment to homelessness funding ... so we can continue to work together to ensure funding is going to frontline services.

"Accordingly, I have written to state ministers seeking their commitment to support this partnership and to advise them of the Government's decision.

"The Australian Government will also be looking to put in place reporting arrangements with the states and territories that ensure the effectiveness of service delivery in these critical areas," he said.