The dream of having all their facilities in one spot has encouraged AFL club Melbourne to look at a new Docklands project.

A $1 billion housing project not far from Etihad Stadium will feature a public park.

Melbourne Lord Mayor Robert Doyle is proposing that Melbourne set up their training and administrative headquarters as part of the park.

"But it would also be open space that could be used by the people of Docklands when Melbourne are not using it," Mr Doyle said.

Victorian Premier John Brumby is far from convinced, saying: "(Doyle's) big idea that somebody else will pay for - sounds good."

Currently, the Demons are establishing strong ties with the Casey Fields facility, in Melbourne's outer eastern suburbs.

They will use the ground for training as part of a 30-year agreement.

The Demons will also move their football department into the new rectangular stadium at Olympic Park.

"Melbourne has been fragmented for years and years and (that) will improve significantly when our football operations move into the rectangular stadium," said Demons chief executive Cameron Schwab.

"But we'll still have the rest of the office based out of the MCG, so we're still separated.

"While we're really looking forward to it and we think it will be terrific, this is a unique opportunity to have a fully-integrated facility in the (Docklands) precinct.

"It's the old Melbourne within the new Melbourne and it's something we're keen to explore."

Melbourne have been in discussions for several months about the Docklands plans, but are mindful that it is a new venture.

"Like most of these things, there's a lot that goes into it - the funding being one of the critical issues," Schwab said.

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