The Australian Government has committed A$150m ($114m) to the completion of the M80 Ring Road upgrade project in west Melbourne.

The highway from Sunshine Avenue to the Calder Freeway will get a third lane in each direction to improve traffic flows.

The project, which is expected to create around 1,000 jobs, will deliver a fully upgraded M80 between the Western Highway and Sydney Road.

"The M80 Ring Road project is essential to the future operation and linkage to the proposed Western Distributor project, or the East West Link."

The M80 Ring Road project is essential to the future operation and linkage to the proposed Western Distributor project, or the East West Link.

Enhancements to be carried out under the project will also include new overhead electronic lane signals, variable speed limit signs, CCTV cameras and upgrades to communication networks and central control systems.

The road upgrade would have been completed in the second phase of the East West Link project, which was cancelled by the Victorian government.

The Victorian government had decided to cancel the East West Link project; however the Commonwealth government stands ready to fund credible, shovel-ready infrastructure proposals in Victoria.

On the matter of the Western Distributor proposal, there have been productive discussions between the Commonwealth and Victorian governments in evaluating the merits of this project.

Assistant federal infrastructure minister Jamie Briggs has urged the Victorian government to allow Transurban to put the plan before Infrastructure Australia for immediate evaluation.

The government is concerned that the Western Distributor proposal is likely to cost motorists in the east to build a road in the west through the extension of current tolls on CityLink and the Monash Freeway.