Environmentalists are suing the state government for failing to look after three threatened species of owl found in key logging areas of Gippsland.

Green group Environment East Gippsland launched the legal action in the Supreme Court on Monday, alleging the Department of Environment and Primary Industries and VicForests had failed to set aside areas in the Gippsland Forest to protect the powerful, sooty and masked owls.

Environment East Gippsland co-ordinator Jill Redwood said the Goongerah-Deddick fires in January and February this year burnt 170,000 hectares of forest. Legally, the government was required to review and secure replacement forest areas considered as suitable habitat for the owls, she said.

The powerful and sooty owls are listed as vulnerable and the masked owl as endangered, according to Victoria's Flora and Fauna Guarantee Act 1988.

Action statements for the management of the powerful and masked owls state each species requires at least 100 areas of 500 hectares each, while the sooty owl needs 131 areas of at least 500 hectares.