A new tram route is being planned to connect Melbourne's southeastern suburbs.
The Victorian Labor government announced on Tuesday it will provide $3 million in next month's budget to design and plan the route, between Caulfield and Rowville.
"This new connection will give hundreds of thousands of Victorians a fast and efficient option to get to work, study or home, and help ease traffic on some of our busiest roads," Public Transport Minister Jacinta Allan said in a statement.
The proposed corridor would begin near Caulfield Station, stop at Chadstone Shopping Centre and finish outside Monash University's Clayton campus, before extending to Rowville.
The route will align with the employment hub that includes the Australian Synchrotron, Monash Medical Centre and future Victorian Heart Hospital.
The government says the route would provide a boost to the area's economic activity and reduce traffic congestion on nearby arterial roads.
Residents and business owners will be consulted over the project, with the initial planning work to consider park and ride options, stop locations and cost and travel time benefits.