A popular Mornington Peninsula beach and its bright bathing boxes have been thrown a lifeline, despite Victorian authorities previously deciding they were doomed by the march of erosion.

Earlier this year the state government revealed it had given up hope of saving Mount Martha North Beach, where sand is disappearing and water has already begun surging beneath the colourful bathing boxes.

The decision put the state government on a collision course with federal minister and local MP Greg Hunt, who campaigned to save the beach before the May election.

Beach boxes exposed to the sea at Mount Martha North Credit:Eddie Jim

But now the Andrews government has agreed to rethink its decision and will look at other options, with the federal government committing $1.5 million to the rescue mission.