Victoria could have a second international airport by the end of this year, with Avalon Airport securing AirAsia to operate its first overseas services.

Avalon Airport airport and AirAsia will on Sunday announce that the Malaysian carrier will move its twice daily return service between Melbourne's Tullamarine Airport and Kuala Lumpur to Avalon.

An aircraft from Air Asia X.

The airport, 15 kilometres north-east of Geelong and 50 kilometres south-west of Melbourne, will need to build an international terminal and secure immigration, quarantine and Border Force agencies.

Avalon and AirAsia believe the service could be operating by late 2018, it is understood.