Established suburbs, including Melbourne's leafy eastern postcodes, could become home to the bulk of new housing under a refreshed 35-year plan for the city.

The Andrews government is rewriting sections of Plan Melbourne, a blueprint for how Melbourne can accommodate an extra four million residents by 2050.

The plan was released by the former Napthine government last year but was criticised for failing to provide a long-term vision for growth.

Planning Minister Richard Wynne launched the discussion paper "Plan Melbourne Refresh" on Thursday. It says the city's established areas could be asked to provide 70 per cent of new housing, limiting growth on the urban fringe to 30 per cent.

The 2014 version of Plan Melbourne called for established areas, including the central city, to accommodate only 61 per cent of the 1.57 million new dwellings needed before 2051.