A library and learning hub will improve economic development in the Melton Shire Council area through federal funding.

Melton Shire Council received the $4 million for the $19.5 million Melton Library and Learning Hub through the Regional Development Australia Fund (RDAF).

This follows the Victorian Government’s funding of $1.5 million as well as developer contributions, with council also funding the balance of the project.

According to the council, the development will support 77 Full Time Equivalent (FTE) positions during the construction phase and 15 FTE positions once operational.

The council said the training and business incubator elements of the library and learning hub will have a role in up-skilling community members.

It will provide opportunities for economic diversification, the council said.

Mayor Justin Mammarella said the project will deliver an integrated community hub that will be the “lounge room” of the Melton Township.

Mr Mammarella said the hub will “improve access to recreation materials, education, training, children’s services, employment and business opportunities”.

He said the funding strengthens regional library, community and learning resources, improves access to education, training, employment and business opportunities within and around the Western Metropolitan Region.

Minister for Regional Australia, Simon Crean said the facility will be four times larger than the one it replaces.

"The Shire of Melton responded to the challenge of developing a creative proposal that stacked up, effectively leveraged other funding and sustained the economic and social future of the region," Mr Crean said.

Mr Crean said the training and business incubator elements provided will have a role in up-skilling community members and providing opportunities for economic diversification.

Member for Gorton, Brendan O’Connor said the hub will promote participation of individuals from disadvantaged groups, culturally and linguistically diverse backgrounds and increase cooperation among community groups and service delivery organizations when the hub is completed.