Mr Napthine will reveal that a package of $2m over the next four years will be devoted specifically to animal welfare.

And the premier will ask racing bodies to contribute on a dollar-for-dollar basis, the money  going towards retired racehorses, harness horses and greyhounds.

The premier said on Friday that Victoria had been at the forefront of ensuring that animals in retirement are well looked after and this was another significant step in that direction.

"We hope that with this funding that dogs and horses can be well treated once their racing days are finished. We've been so encouraged by the amazing GAP project which places retired dogs in homes as pets and I think with this money that's now become available we will be able to accommodate more and more for the dogs and racehorses," Mr Napthine said.

He will announce the welfare changes at Saturday's Ballarat Cup meeting but stressed that he was keen to have input from racing, harness racing and greyhounds over where the money would be best spent.

"I'd like them to come to us with their ideas or innovations and we can examine them together and then the money will begin to circulate," he said.

"It's an exciting venture that I'm sure all racing enthusiasts and animal welfare lovers will embrace.

"We've continued to work hard in this direction and we will in the future."

Mr Napthine said he was understandably enthusiastic about the scheme as he is a former veterinary surgeon in the western district.

"I have seen first-hand the rapid improvement funding like this can make and it will ensure that these animals have a good retirement," he said.

With the state election just a week away, Mr Napthine is expected to present the trophy at the $200,000 Ballarat Cup, an important city with the looming election and the seats with their boundaries have always been tightly fought.