Victoria could walk away with nothing under the federal government's asset recycling initiative, with Treasurer Scott Morrison warning that the Commonwealth is "under no obligation" to pay up following a bitter stoush over the $9.7 billion lease of the Port of Melbourne.

The state government is furious over a refusal by the Turnbull government to hand over the full 15 per cent payment – equivalent to about $1.46 billion – it says it is entitled to under the flagship infrastructure scheme, after claiming a windfall gain from the port sale this week.

Instead, Mr Morrison is offering the $877.4 million set aside in the May budget.

In comments sure to further inflame tensions, Mr Morrison suggested that unless Victoria agrees to the Turnbull government's conditions, it will be lucky to get anything.