The Victorian Government should not jump to support Eddie McGuire's proposal to sell Docklands stadium and build a new complex near the MCG, a planning expert has warned.

Key points: Proposed 60,000-seat stadium would cut into grassland, planning expert says

Proposed 60,000-seat stadium would cut into grassland, planning expert says Premier Daniel Andrews says AFL should consider idea

Premier Daniel Andrews says AFL should consider idea McGuire says sale would give AFL $1b to spend

The Collingwood president has floated the idea for the AFL to sell the stadium and build a new 60,000-seat complex near the MCG and Rod Laver arena, otherwise known as Melbourne's sports precinct.

McGuire said the new stadium, which would have a retractable roof, would be built on the site of the existing Hisense Arena.

Professor Michael Buxton from RMIT University said building a new stadium along the Yarra would "plunder" Melbourne's much-loved green space.

"There are some cautionary factors. If Hisense Arena is going to be replaced, where will it be moved to?" he said.

"Given Melbourne's previous track record of building on parkland, there is a reasonable chance it will go into parkland."

The proceeds of the sale would go towards game development and eliminating club debt, McGuire said.

Under the project, nearby Richmond railway station would be moved underground and a road tunnel would be built to link the precinct to Swan Street and Punt Road.

McGuire said the new stadium could also be used by other sports, such as rugby and soccer, and concerts, to create a central hub for events in Melbourne.

Professor Buxton said while the idea of having the facilities in the one place sounded great, it would likely lead to traffic congestion and parking problems.

AFL should consider stadium proposal, Premier says

Premier Daniel Andrews said he would take a closer look at the proposal, but it should be considered by the AFL.

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Mr Andrews said Melbourne needed to consider strategies to hold onto its reputation as the sporting capital.

"I think the AFL should have a close look at it, the MCC [Melbourne Cricket Club]," he said.

"I'm certainly keen to see that we don't just have a good sporting precinct, but we have the very, very best."

The AFL said it was open to discussing the best infrastructure outcomes for the state.

"The AFL supports the Premier's view that Victoria has world-class sporting facilities, but that we need to invest to ensure that we don't go backwards in an increasingly competitive market.

"The AFL is keen to continue to discuss with the Victorian Government the best stadium and infrastructure outcome for the City of Melbourne and the Victorian public."

Mr Andrews said he had had "a couple of conversations" with McGuire in the past about the idea.

Professor Buxton said the Premier needed to evaluate the bigger issues "before jumping in and supporting the issue".

"It's easy to jump in and adopt a build philosophy without looking at the potential problems with that," he said.

"Approvals are easy but the consequences of approvals for things in the wrong place are felt by the community for ever."

Collingwood has history of 'putting own interests first'

McGuire said Docklands stadium was a liability and selling it would "bulletproof" the AFL competition.

"The AFL owns [it], they have to decide what to do with it. Docklands stadium hasn't quite worked," he said.

Eddie McGuire said a new stadium in Melbourne's sporting precinct could make it the best in the world.

"There's a chance to refigure Melbourne and get everything up in that sports and entertainment precinct, and really turn that into something that is absolutely probably the best in the world if we get it right.

"And the missing piece in the puzzle is a 50,000- to 60,000-seat stadium."

But Professor Buxton questioned McGuire's motives.

"Collingwood Football Club has a very bad record of putting its own interests first in the Swan Street precinct," he said.

"Since they moved into that area they bumped other users down the track, down Swan Street and made a big bid to take over Goshes Paddock, the last large bit of public space in that area.

"Collingwood has a big vested interest in this whole area. The motives and the interests in players in this kind of proposal really need to be very carefully evaluated."