With the Victorian school year just days away, federal Education Minister Dan Tehan says a state government letter about education funding is the first sign of a deal on the thorny issue.

But the Andrews government is continuing to hold out, insisting it will not sign up to any long-term agreement it considers unfair for state schools.

Federal Education Minister Dan Tehan. Credit:Alex Ellinghausen

Mr Tehan told reporters on Sunday a letter from the Victorian Education Minister James Merlino was "the first indication" Victoria would ink an agreement with the federal government.

"I saw this as the first indication that (Victoria) might be serious in following every other state and territory education minister in coming to an agreement with the Commonwealth government," Mr Tehan said in Melbourne.