Three suburban train stations will be rebuilt underground as part of Labor's latest round of level crossing removals.

Premier Daniel Andrews on Tuesday morning announced that an alliance of Leighton Contractors, Aurecon and Hyder Consulting had been selected to remove crossings at Heatherdale Road in Mitcham, Blackburn Road in Blackburn, and at two sites in St Albans: Main and Furlong roads.

An artist's impression of the Heatherdale station underground project.

The $480 million package includes $151 million from the federal government.