ONE of Melbourne's most hated level crossings is one step closer to being upgraded.

The Burke Rd and Wills St level crossing in Glen Iris was one of seven level crossings across Melbourne to share in a $52.3 million funding boost in April.

Minister for Roads and Public Transport Terry Mulder announced last week VicRoads had awarded the contract to prepare the designs and develop options to Hyder Consulting.

Mr Mulder said the Burke Road level crossing removal formed part of the Victorian Coalition Government's Metro Level Crossing Blitz, the largest crossing removal program in Victoria's history.

He said the Burke Rd crossing carried about 25,700 vehicles, 150 trains and 95 trams every day.

"This location is one of four main arterial roads in Melbourne where trams cross the railway lines, and we will make it both safer and less congested," Mr Mulder said.

"During peak times, trains cross the tram tracks every two to three minutes, causing the boom gates to come down for up to 38 minutes an hour.

"Trains are currently reduced to safe speeds of 15km/h as they travel across the tram tracks, creating longer boom gate closures.

"This is frustrating to all commuters and can affect queuing and traffic flow on the Monash freeway."

Malvern state Liberal MP and Treasurer Michael O'Brien said it was welcome news for the community.

He said in the next six months VicRoads would be working closely with Stonnington Council and key stakeholders to develop design options for the level crossing removal.

"Feedback from the local community is an important part of the design process to ensure the right outcome for the people of Malvern," Mr O'Brien said.

"Residents, businesses, road and public transport users will be invited later in the year to discuss the project with VicRoads and to provide input into the project."