Victoria's Parliament has passed legislation to change the name of the University of Ballarat.

The university has changed its name to Federation University Australia and will take over the Monash University Gippsland to create a new regionally-focused institution.

Laws to transfer land still need to be finalised but the Federation University is expected to open early next year.

There has been some discussion about initials of the new University, FU, but the Minister for Higher Education, Peter Hall, believes it will become known as Fed Uni.

"I think in time to come this will be abbreviated and become well known and a respected brand not only across Victoria but nationally and internationally as well," he said.