Australia's first female Supreme Court Chief Justice, Marilyn Warren, has been described as an inspiring role model for women as she announces her retirement.

Ms Warren has advised the State Government and other judges of her decision to resign, effective from October.

She was appointed to Victoria's most senior judicial position in 2003, becoming the first woman in the role in any state or territory.

The Law Institute of Victoria (LIV) described Chief Justice Warren as a distinguished leader and an inspiring role model.

LIV president Belinda Wilson paid tribute to Chief Justice Warren's achievements modernising the workings of the Supreme Court to make the justice system more accessible and relevant.

"While treasuring the heritage value of one of Victoria's most beautiful buildings, she fought for the Supreme Court's modernisation to better serve the needs of victims of crimes, witnesses, and others who come in contact with the courts," Ms Wilson said.

She said Chief Justice Warren had also supported other women and tried to address the obstacles that prevented them from rising to the top of the profession despite making up the majority of law graduates.

"Chief Justice Warren has given outstanding service and has provided exceptional leadership at a state, national and international level to make sure all Victorians have full confidence in our legal system," she said.

'She's been outstanding,' Justice Lasry says

Supreme Court Justice Lex Lasry said on Twitter: "It has been an honour to serve in her office."

"She has been outstanding," he said.

In May 2016, Chief Justice Warren ended the tradition of judges and barristers wearing wigs in the Supreme Court, arguing they were not part of a modern court.

She has also advocated for courts to embrace technology, overseeing an increase in the Supreme Court's social media presence to improve community understanding about legal issues.

In an interview to mark the court's 175th anniversary last year, Chief Justice Warren told the ABC more needed to be done to encourage women to the bench and increase the racial diversity of judges.