Government calls time on region's 2026 Commonwealth Games

Games delivery minister Jacinta Allan says each community and sporting facilities in Bendigo and elsewhere will go ahead.

"To be clear this morning, each of those facilities will continue," she said.

"In Bendigo, the upgrade, the expansion of the Bendigo Stadium, an additional four courts will be proceeding," she said.

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Upgrades would take place at the Bendigo Showgrounds along with the Bendigo Bowls Club, Ms Allan said.

Premier Daniel Andrews has pulled the pin on the games, blaming cost blowouts.

The government insists it will spend money from a $2.6 billion fund already.

"What's become clear is that the cost of hosting these games in 2026 is not the $2.6 billion which was budgeted and allocated and is sitting, the vast, vast majority of which has not been spent," Mr Andrews has told journalists in Melbourne.

"It is not $2.6 billion, it is in fact at least $6 billion and could be as high as $7 billion.

"I cannot stand here and say to you that I have any confidence that that even $7 billion number would appropriately and adequately fund these games."

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The games were to take place in Bendigo and other host cities including Ballarat, Geelong, Shepparton and Gippsland.

The government is still to confirm how the cancellation with change timelines for infrastructure builds, though Mr Andrews insists it will free up money that would otherwise have needed to be spent on the 12 day sporting event, not things like the public housing that would have come post Games.

"We will have more to say and talk to communities about how we deliver each and every element of that legacy package," he said.

"But we will get it done as quickly as we possibly can."

Mr Andrews insisted all options were canvased to avoid canning the games, including moving events to Melbourne.

"We have looked at less sports, we have looked at every conceivable option. All of them are far in excess of the $2.6 billion that's been budgeted, so all of them represent more cost than there is benefit," he said.

Mr Andrews wanted to be very clear that the decision was not about the Commonwealth Government, which was yet to commit funding for the games.

"Our ask was 50-50 [funding splits], but not 50-50 at any price, and not 50-50 at six or $7 billion," he said.

"I would not spend half of that money, even if I got the other half.

"You know that that's coming at the expense of something else, hospitals, schools, roads, whatever it might become a new project I mean, future we need all things we simply cannot do without."

This story is being updated as more information comes to hand.

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