Victoria's National Party will review its coalition arrangement with the Liberals in wake of "grim" election results, the ABC understands.

The Victorian election delivered disappointing results for the National Party.

The predicted loss of the seat of Shepparton to independent candidate Suzanne Sheed was a devastating blow for the Nationals.

The party had held the seat for more than four decades.

They are also fighting to retain the seat of Morwell, held by Nationals MP Russell Northe.

It is also expected Nationals Upper House member David O'Brien has lost his seat.

The ABC understands the coalition partnership will be "reviewed" when the Nationals hold a party room meeting on Wednesday.

On election night Nationals leader Peter Ryan said the Coalition had not been able to get "clear air" during the campaign.

"The basic fact is I think the way campaigns are run in a contemporary political world has probably changed forever," Mr Ryan said.

"The Labor Party ran an astute campaign focused on Mr Andrews ... I think they campaigned well.

"In the end, on the face of it, the position for us tonight is grim."

Mr Ryan agreed to re-join the Coalition in 2008 when Ted Baillieu was Liberal opposition leader.

It was Mr Ryan's decision in 1999 to pull the Nationals out of the Coalition with the Liberal Party when Jeff Kennett lost government.

The Nationals contested the 2002 and 2006 elections separately from the Liberal Party.