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Adrian Black and Callum Godde

Weeks of wrangling to settle Commonwealth Games bill

Lawyers for the Commonwealth Games Federation and the Victorian government are locked in talks. (James Ross/AAP PHOTOS)

Victorian taxpayers could wait weeks to find out how much it will cost the state to pull out of hosting the 2026 Commonwealth Games.

Lawyers for the state government have been negotiating with the Commonwealth Games Federation in London since last week after Premier Daniel Andrews made the shock announcement that the state would relinquish the Games.

Victorian Health Minister Mary-Anne Thomas confirmed the government's negotiation team had returned to Australia, but she said talks would go on remotely.

She could not provide a timeline or confirm how much the federation was seeking in compensation.

"It's a complex negotiation and it's continuing," Ms Thomas said.

"I'm sure a resolution will be forthcoming."

A Victorian government spokesman said in a statement that negotiations would be continuing over the coming weeks.

The state dumped hosting the Games across five regional hubs over a forecast cost blowout of up to $4.4 billion, having initially budgeted $2.6b for the 12-day event.

Ms Thomas said the decision to cancel had been tough and disappointing, but she maintained it was the right choice.

Victorian opposition leader John Pesutto demanded the government come clean on the cost of cutting the Games.

"Well, it's day seven of the Commonwealth Games debacle and we still have no costings," he said.

"We've seen this scandal only deepens today with news that the negotiating team has returned to Victoria empty-handed, which tells us all that the problem is worse than we were told."

Mr Pesutto accused the government of holding back the announcement, saying negotiators had been in London before the cancellation was announced.

Would-be host councils are pinning their hopes on government promises to follow through with key regional infrastructure upgrades and a $1b housing package for across the state.

In northern Victoria's Shepparton region, where some residents are still displaced from spring floods in 2022, mayor Shane Sali said the local council was trying to make the best of a disappointing situation.

Plans to upgrade the regional hub's BMX clubhouse remain intact and the council will continue to push for upgrades to its sports and events centre.

Mr Sali said he looked forward to more detail on the planned housing funds with Shepparton experiencing the same accommodation pressures as other regional and metropolitan areas.

In Geelong, which was set to host seven sporting events and the closing ceremony, mayor Trent Sullivan could see benefits to targeting projects at local outcomes rather than building Games infrastructure to be repurposed later.

"Everybody right now is in uncertain economic times," Mr Sullivan told AAP.

"Everybody now wants a bit of the money that's back on the table."

Mr Sullivan added it was vital the state government continued to engage with local councils.

"They can draw upon all the data and information we have, about what our communities need in infrastructure and housing going forward," he said.

Bendigo City Commonwealth Games director Andrew Cooney said the cancellation remained disappointing but upgrades for the city's main stadium, showgrounds and bowls clubs should go ahead.

Mr Cooney said Bendigo City would work to get the most out of broader promises made after the cancellation, including a $150m regional worker accommodation fund, $60m for regional tourism infrastructure and another $20m to market the regions.

"We'll keep working to get the best deal we can, but we want to make sure that all these good ideas find a way to happen somehow," he said.

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