Labor is claiming victory over the Greens in a tightly-contested fight for the state seat of Melbourne.

State Labor leader Daniel Andrews and Melbourne candidate Jennifer Kanis made the declaration this morning as counting put Labor in front by 754 votes.

Greens candidate Cathy Oke with the party's deputy leader Adam Bandt as voters head to cast their votes in yesterday's byelection for the seat of Melbourne. Credit:Meredith O'Shea

‘‘Labor believes we have won the Melbourne by-election,’’ Mr Andrews told reporters.

‘‘We’re very proud of the result, we’re very proud to have run a very strong local campaign.’’