Funding for the project was overlooked in last week's State Budget angering some local politicians.

A spokesperson for Roads and Ports minister, Tim Pallas told The Express the Brumby Government was working with the Rudd Government to secure funding for the highway.

``The Victorian Government is currently working with the Commonwealth Government to progress the significant environmental and planning issues in relation to this corridor,'' the spokesperson said.

``(Both governments are also) finalising future funding arrangements.''

The Express reported last Thursday that Nationals MLA for Morwell Russell Northe and Liberal MLC for Eastern Victoria Philip Davis were disappointed the duplication appeared to have been overlooked by the Brumby Government's State Budget.

Both MPs stressed the importance of the stretch of highway for commercial purposes and highlighted the dangerous traffic volumes particularly on weekends and holiday periods.

Mr Davis strongly urged the Rudd Government to announce funding for the highway in this week's Federal Budget.

Labor candidate for the Gippsland by-election, Darren McCubbin previously told The Express the Rudd Government would commit $140 million for stage one of the project and was ready to work with the state to deliver it.

But Mr McCubbin could not confirm when the government would fund the highway duplication.

Nationals candidate Darren Chester and Liberal Party candidate Rohan Fitzgerald have also pledged to push for works to proceed.

During the 2007 Federal Election, the former Coalition Government pledged $250 million to expand the national highway between Traralgon and Sale to four lanes.