ATTORNEY-GENERAL Rob Hulls will today announce a controversial compromise struck with the state's religious groups that will allow them to continue to discriminate against gays and lesbians, single mothers and people who hold different spiritual beliefs.

In a move that has delighted religious groups but angered gay activists and discrimination experts, Mr Hulls will protect the right of hundreds of church-run organisations - including schools, hospitals and welfare services - to refuse to employ or provide services to people who they believe may undermine their beliefs.

Under the deal, Mr Hulls will allow church groups to continue discriminating on the grounds of sex, sexuality, marital and parental status and gender identity. But they will be unable to discriminate on the basis of race, disability, age, physical features, political beliefs or activity, or breastfeeding.

The decision has dismayed groups that argued that the review was a chance to eliminate entrenched discrimination in Victoria, which has more exemptions to its equal opportunity law than any other state.

Leading discrimination law expert Professor Margaret Thornton said it was a win for fundamentalist religious groups. ''In terms of a person's private life … their sexual preference or marital status really has nothing to do with their ability to perform a job. Being able to discriminate on marital status is particularly absurd. It is really out of date. It really amounts to the policing of women because the focus is on single mothers, not on men.''