Prime Minister Tony Abbott says he will consider allowing the Victorian Government to use money allocated for the East West Link for other major projects.

The toll road has been abandoned by the Labor State Government, despite contracts to build it being signed by the previous Coalition government.

The Government is negotiating with the companies involved to dissolve the contracts.

The Commonwealth has already given Victoria $1.5 billion for the road, and Mr Abbott has said the money was only for East West Link.

But Premier Daniel Andrews wants to use the federal funds to help pay for the Government's other transport priorities, including the upgrade of Melbourne's train network and the removal of 50 level crossings.

The Prime Minister has previously said the Commonwealth would not fund metropolitan rail projects.

Mr Abbott told Fairfax Radio he would consider allowing the money to be spent on other big-ticket projects.

"I am not going to rip-off Victoria," Mr Abbott said.

"I want to see the cranes in the sky and the bulldozers on the ground here in Victoria.

"I'm happy to talk to [Mr Andrews] about other important projects of national significance.

"He can't keep the East West [Link] money and spend it on whatever he likes.

"It's got to be something which the Commonwealth believes is important economic infrastructure of national significance."

PM's East West Link comments 'encouraging'

Mr Andrews has welcomed Mr Abbott's comments.

"I'm very encouraged both by my private and important conversations with Tony Abbott and his public comments today," Mr Andrews said.

"We're having very productive, positive discussions with the Prime Minister about how we can put the politics aside and be focused on better outcomes for the people of Victoria."

Mr Andrews would not be drawn on what projects he may seek to use the federal funds for.

"I'm not going to go through a shopping list," he said.

"It's disappointing the Federal Government have a view in relation to rail projects. I don't share that view and I think public transport is critically important to our state.

"But it's important, if you're going to work with people and be constructive, to focus on the things we'll be doing."

Victorian Opposition leader Matthew Guy has previously said he believed the $1.5 billion given to Victoria should stay in the state, despite strongly backing the East West Link.