Planning Minister Richard Wynne announced in parliament today the multi-million-dollar projects had been called in and the necessary planning amendments approved.

He said the project was crucial to the government's promise to create new jobs.

It comes only days after the South Australian Government fast-tracked planning approval for Midfield's proposed milk processing plant at Penola.

Minister Wynne said his government had been following the Warrnambool issue for some time and today's announcement was not a knee-jerk reaction to the Penola approval.

Last month a special planning panel, which sat in Warrnambool for eight days to hear submissions, recommended the expansions be approved by the city council.

No date had been set for a council decision, but was likely within the next month.

Warrnambool mayor Cr Michael Neoh today said the state's decision opened potential for private investment and job creation.

"I strongly encourage Midfield to reconsider Warrnambool as the priority site for its first milk plant development which would send a positive signal of continued investment and commitment to the community of its home base," he said.

South West Coast MP Denis Napthine who was premier when the Warrnambool expansion was announced early last year welcomed the Andrews Government decision to call it in for special attention.

"This is good news for the regional economy and will value-add to the agriculture industry," he said.

"Growing marketing opportunities in the rapidly-expanding Asian economies underpin this important local investment."