The 2020-21 Victorian Budget handed down last week did not include funding for the proposed residential rehabilitation centre at Dennington, which was approved by the Victorian Civil and Administrative Tribunal earlier this year.

The community has raised more than $620,000 for he project in recent years, with proponents hoping to work with the Department of Health and Human Services (DHHS) to look at ways to further fund the completion of the project.

Western Region Alcohol and other Drug (WRAD) centre director Geoff Soma, who has led the push, said WRAD remained confident the project would go ahead.

"We acknowledge the ongoing discussions with the department on this important project and we are hopeful of ongoing support from the government," Mr Soma said.

"We also acknowledge the terrific ongoing support of the local community who have committed their passion and their donations to making this project become a reality."

A DHHS spokeswoman said the department was in "ongoing discussions" with WRAD on progressing the project.

"This includes advancing the sale of the Dennington site to WRAD, an important milestone for this project," she said. "We support the organisation's efforts advocating for federal government funds for the capital component of the project."

Federal member for Wannon Dan Tehan said funding for the capital infrastructure for the project should be directed to the state government and Local Primary Health Network.

"The funding of Alcohol and other Drugs (AOD) is a shared responsibility between the commonwealth and states and territories," he said.

"States and territories are the primary funders of AOD infrastructure. The Commonwealth in the main provides block funding to Primary Health Networks who commission local services in specific areas."

Mr Tehan said he continued to meet with members of The Lookout committee, including Geoff Soma and Glenys Philpott, to have discuss the proposed facility.

"I continue to be amazed by the community support for the project and the significant donations that have been received," he said.

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