Hisense Arena Credit:Eddie Jim

An ambitious $1 billion plan for Tennis Australia to take over and revitalise Melbourne Park has been shelved with the state government rejecting the proposal.

Tennis Australia had approached the Andrews government with a pitch to assume management of the precinct including Rod Laver, HiSense and Margaret Court arenas.

It was reported this week that Tennis Australia had sought a 21-year lease for the area in a bid to take over the controlling rights of the Melbourne and Olympic Parks Trust.

As part of the proposal, Tennis Australia promised to inject new life into the area with more entertainment options outside of major events.