An extension of Melbourne's busy Frankston line is inching closer, with the Andrews government confirming it has started work on a business case for electrification to Baxter.

The study will examine possible duplication of the northern section of the Stony Point line, with possible new stations at Frankston Hospital and Langwarrin.

Transport Minister Jacinta Allan said the study would examine all aspects of the proposed extension.

"It would include looking at things like where you would need track duplications, station upgrades, putting in appropriate carparking," she told 9NEWS.

The proposed extension would see the current 12 times a day diesel railcar service replaced by electric trains, running every ten minutes.

The proposed extension would see disel railcar services replaced by electric trains. (9NEWS) (9NEWS)

Frankston Mayor Colin Hampton said he is convinced the numbers will stack up.

"It will, I’m sure it will," he said.

"There’s such an amount of growth here, not only in the Frankston region, but also in the Mornington Peninsula region."

The Andrews government said the extension can’t be delivered without the level crossing removal projects. (9NEWS) (9news)

The business case is being undertaken by Transport for Victoria, but is being funded by the Turnbull Government.

Federal Member for Dunkley Chris Crewther said he is hoping to have a preliminary result ahead of November’s state election.

"I’m advocating for both the state to put in funding for the project, but also a federal co-contribution," he said.

"It’ll help free up carparking at Frankston, Kananook and Seaford".

The Andrews government said the extension can’t be delivered without the level crossing removal projects, currently underway at the southern end of the Frankston line.