The Federal Government is promising to invest $2 billion for a fast train service between Melbourne and Geelong if the Victorian Government matches that investment.
Daniel Andrews Government announced $50 million in last year's budget to look at the business case for the project.
Under the Federal Government's proposal, the trains would travel at an average speed of 160 kilometres per hour and take about 32 minutes, down from the current time of about an hour.
Federal Minister for Urban Infrastructure Alan Tudge says construction could begin within 18 months.