Melbourne's newest freeway will open later this week, after an announcement from Premier Ted Baillieu on Wednesday.

The premier and roads minister Terry Mulder announced that the $759 million Peninsula Link - which spans 27 kilometres from EastLink in Carrum Downs to the Mornington Peninsula Freeway in Mount Martha - will be operational for Friday morning's peak hour traffic. The road will open late on Thursday.

Peninsula Link will be operational for Friday morning's peak-hour traffic. Credit:Gary Sissons

The government's Linking Melbourne Authority claims the road will cut the time of a trip between Mount Martha and Carrum Downs to 17 minutes, saving up to 40 minutes during peak times.

“It is expected that the Frankston Freeway and Moorooduc Highway will also experience up to 30 per cent less traffic, which will make a huge difference to local families and businesses,” Mr Mulder said.

Mr Mulder also announced that 70 per cent of the 25 kilometre bicycle and walking path will also open on Friday. The other parts are scheduled to open in coming months.

The road is toll-free and is being constructed through a public-private partnership, including contractor Abigroup and construction company Lend Lease.