The Victorian Government will set up a taskforce aimed at stopping disaffected young people becoming radicalised and turning to terrorist organisations.

They announced $25 million would be spent over four years for the plan aimed at engaging young people at risk of radicalisation.

It follows a series of counterterrorism raids in Melbourne last month, in which two young men were charged over an alleged Anzac Day terrorist plot.

A third teenager was charged with weapons offences.

The taskforce will involve the education, multicultural affairs, youth, and police departments, as well as community leaders, who will identify and recruit young people to reach out to disaffected youth.

Multicultural Affairs Minister Robin Scott said young role models would be recruited to engage disaffected youth.

"I've been to a lot of good meetings where people who are in their 40s and 50s and 60s are talking about how they help young people," he said.

"Obviously there's a role for older people but we need to get young people themselves in the process."

The plan will be detailed in this week's Victorian budget.

Prime Minister Tony Abbott welcomed the plan, saying he was keen to continue working with the states to "counter violent extremism".

"We want to work with people who are at risk of succumbing to the lure of the death cult and try to bring them back," he said.

"So many of them have been brainwashed and hypnotised online.

"I welcome the efforts of the states and I look forward to working with them."