The Bendigo Council has approved plans for the city's first mosque, despite fierce opposition from some locals who claim the council has failed to protect them from terrorists.

More than 200 people packed into the public gallery at the central Victorian city's council meeting on Wednesday night.

Most had come to voice their objections to a planning application for the mosque in East Bendigo and police were on hand in case things got out of hand.

During the debate, which lasted more than two hours, councillors were constantly shouted down by the gallery, accused of being liars and not listening to ratepayers.

Opponents said the mosque would bring violence to Bendigo and the city would be overtaken by Sharia law.

"If you're Muslim and you want a mosque, go back to the Middle East. This is Australia," one member of the public said.

The protest group asked what councillors were doing to protect the city from terrorism and accused the council of failing to consult the community.

"Bendigo people own Bendigo, it's their town, they have the right to say mosque or no mosque," one person said.

"We're not racists."

Frustrating night for council: Bendigo Mayor

Councillors voted seven to two to support the development, but agreed the matter was likely to end up at the Victorian Civil and Administrative Tribunal.

Councillor James Williams, who voted in favour of the project, addressed the audience, saying we all live in a tolerant country that does not allow extreme actions and racist behaviour.

He said Australia was made up of many backgrounds and beliefs.

Mayor Barry Lyons said it was a frustrating night for the council.

"The councillors, in general, had a lot of trouble having the debate," he said.

"They were howled down quite often.

"But it was a debate we had to have and it was conducted in the best manner [possible]."

Objections to the mosque planning application now number 432, in a regional city of more than 100,000.

Victoria's Multicultural Affairs Minister Matthew Guy said people have no reason to fear Islam.

"I think the Islamic community is making a very strong contribution to our state," he said.

"I think [the protesters] need to be respectful and sensible if they disagree with a planning application."