Victoria's Public Transport Minister has directed Metro Trains to stop playing Sky News on television screens at Melbourne train stations after the 24-hour news channel aired an interview with far-right nationalist Blair Cottrell.

Minister Jacinta Allan announced the change on social media this morning.

"I've directed Metro Trains to remove Sky News Australia from all CBD station screens," she said on Twitter.

"Hatred and racism have no place on our screens or in our community."

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Sky News Australia has admitted it was wrong to air the interview with Mr Cottrell after a heavy backlash from viewers.

The former United Patriots Front leader was invited onto the Adam Giles Show for a studio interview about winding back immigration and protecting countries against "foreign ideologies".

Within hours of the interview going to air and being shared on various Sky News social media platforms, the channel removed the interview from its repeat timeslots and online platforms.

Speaking to 3AW, Ms Allan said she had had concerns about the broadcaster for some time, and the interview with Mr Cottrell was the final straw.

"That interview was unacceptable, indeed Sky News themselves have admitted they got it wrong," she said.

"I think I've got a responsibility as the public transport minister to ensure that passengers aren't bombarded with what's really shocking content and messages."

The interview with Blair Cottrell (L) was later removed from repeat timeslots. ( Facebook: @realblaircottrell )

Sky News is played on large screens on several train station platforms, including through the City Loop.

When contacted for comment, Sky News said it had addressed the issue on air in a statement from political reporter Laura Jayes.

Ms Jayes said the interview with Mr Cottrell had never aired on train station screens.

"Sky News is the only network that has banned him from appearing on this channel ever again," she said.

"You don't hear that from the ABC or any of the other commercial networks, who have welcomed him on their news programs many times," she said.

Ms Allan denied the decision to remove the network from screens was censorship.

"If people choose to access that content at home, travelling in their own private time they can absolutely do that," she said.

"But as the public transport minister when it's a public asset that is being used to promote or televise particular content, I think I've got a responsibility to make sure that content's appropriate."

She said the Government was talking to Metro Trains about what content would replace Sky News.

Opposition Leader Matthew Guy said the decision was up to Jacinta Allan, but he thought it was an over-reaction.