Muzzled dangerous dogs on short leashes will be able to pad around Victorian streets when a ban on keeping the restricted breeds is lifted.

Owners will have to keep their pure or crossbred Pitbull Terriers, Japanese Tosas, Dogo Argentinos, Perro de Presa Canarios or Fila Brasileiros behind gates with a turquoise warning sign.

The dogs will have to be desexed, kept in escape-proof housing, microchipped and identified with a special collar.

The ban in keeping them in the state is set to be removed next year as part of the government's response to a parliamentary inquiry into dangerous dog breed-specific legislation.