The Federal Government will fund a purpose-built quarantine hub in Victoria.

The Victorian Government says it has signed a Memorandum of Understanding with the Commonwealth for a new centre at a site yet to be finalised. 

“I am very pleased that today, we have reached agreement, both the PM and I have signed a memorandum of understanding and we are going to get cracking and deliver this facility,” Victoria's Acting Premier James Merlino said.

“This is a very, very good outcome for Victorians and for all Australians.

“What we know with hotel quarantine is it's done a very good job, but it is not no risk. It is not a zero risk environment.”

The Victorian government wants to build a 500-bed facility, and has asked the Commonwealth to cough up the entire $200 million cost.

The location, cost and other details should be announced soon.