Prime Minister Malcolm Turnbull is throwing his support behind a rail link to Melbourne Airport, but the Victorian Government has said the money should be spent on projects that are ready to go.

Mr Turnbull refused to confirm reports that the funding for the project would be included in the May federal budget but acknowledged on Fairfax Radio it was a plan that had been studied by previous Liberal governments.

"The Napthine government took steps towards a rail line to Tullamarine and it's always been something that's been seen as an omission in Melbourne not to have a rail line out to the airport," he said.

Victoria's Public Transport Minister Jacinta Allan welcomed the Commonwealth's interest in the plan but said the funds should be spent on regional rail projects that were ready to go.

"[We] would look forward to working with them to advance the business case on the project because that's what needs to be done first and foremost," she said.

Ms Allan said the problem with going ahead with the airport link was that the Metro Rail project needed to be finished first.

"We already have a public transport system that has significant challenges because there's not the space to run extra trains," she said.

"The Metro tunnel unlocks that capacity and that's why we're working very hard to deliver that right now."

Federal funds from Port of Melbourne sale yet to arrive

The Victorian Government is owed $1.45 billion from the Federal Government from the sale of the Port of Melbourne lease as part of the asset recycling program, which refunds 15 per cent of any sale to the relevant state government.

"It's good to see Malcolm Turnbull is finally admitting some many, many months after the sale of the lease of the Port of Melbourne was finalised, that there is significant funding from that that needs to come to Victoria," she said.

"Let's get this money to work. Let's get it going on projects, infrastructure projects, particularly with a focus on regional rail that are ready to go right now."

David Hodgett, Opposition spokesman on public transport, urged Premier Daniel Andrews to "take advantage" of the federal funds to build the "much-needed" project.

"Melbourne is a laughing stock [because] Daniel Andrews won't commit to an airport rail link," he said.

"Here we have again the Federal Government bailing out Victoria by saying 'here we'll give you some money to build the airport rail link'.

"We'd be urging Daniel Andrews to take advantage of this and build the airport rail link."

Passenger growth means rail is needed: airport

Melbourne Airport said a detailed feasibility study was needed now.

"We support the principle of an airport rail link because our projected growth in passengers from 34 million in 2016, to 60 million in 2033, cannot be effectively serviced without it," the airport said in a statement.

"We need a detailed study into feasible rail options now, because construction will take a decade and realistically the solution will need to be operational in the next 10 to 15 years."

However, the airport said, a rail option would only work if it tackled the wider issue of congestion.

"That means the planning for airport rail must consider the link's role as part of a bigger solution to Melbourne's wider congestion problem."

Last year, Mr Andrews said a private consortium's plan for a monorail to Melbourne Airport was not high on the list of priorities but was worth discussing.

The consortium held discussions over a $1.2 billion plan for a fast monorail to the airport and was calling for $10 million to conduct the studies necessary before proceeding.

The Government has been facing pressure to improve transport options to fast-growing Melbourne Airport, which is currently only serviced by bus.

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