The Federal Government says it has withdrawn a $4 million offer to help establish a research centre headed by Danish academic Bjorn Lomborg.

Education Minister Simon Birmingham has told a Senate estimates hearing the proposal was quietly dropped in the week when Malcolm Turnbull became Prime Minister.

"Certainly, a specific incentive from the Government for such an institute is no longer available," Senator Birmingham said.

Senate estimates has heard the decision was made by former Education Minister Christopher Pyne shortly before a Cabinet reshuffle.

"The previous minister, Minister Pyne, did make a determination that this proposal was unlikely to enjoy success and that the funds could be better utilised elsewhere," Senator Birmingham said.

"If any Australian university wants to engage with Bjorn Lomborg, they should of course feel absolutely free to do so."

Dr Lomborg is a polarising figure globally — charismatic and a clear communicator, he has been nonetheless criticised for his views on climate change.

Initially he was doubtful climate change was occurring and man-made.

Later he came to view climate change as real, but disagreed on the best way to approach the problem.

Flinders University had been considering establishing the centre, after the proposal was rejected by the University of Western Australia following public outcry.

Dr Lomborg maintained the centre never intended to research climate change, only issues relating to the developing world.

"Those who used the announcement of Australia Consensus as a political football had no interest in our record of 10 years' work on development issues," a statement from the centre said.

"Australia could have played a leadership role in setting global development priorities.

"It is a pity for Australian researchers and civil society that won't be the case."

Greens Senator for South Australia Robert Simms described the withdrawal of funding as "welcome" and said it was "in response to a really strong campaign that's been run across the community".

"It's good to see the Turnbull Government making a break with the Abbott era and dumping Dr Lomborg," he said.

A spokesperson for Mr Pyne declined to comment on the decision.