But the proposal is expected to further undermine State Government plans to move the Wholesale Fruit and Vegetable Market from Footscray to Epping, after developer Mirvac backed away from the project amid global economic turmoil.

The significant infrastructure project planned for Avalon would include warehousing, cool rooms and a dispatch centre, and is expected to intensify pressure on the Federal Government to support the Linfox bid to build a $50 million international terminal.

"Once Lindsay Fox gets flights going we will look at a substantial investment at Avalon which will open the door to export fresh produce to Asia," Mr Costa said.

"At the moment it goes on the underbelly of planes from Tullamarine, so we would need direct flights from Malaysia, Singapore and Indonesia."

He said the international export centre would stimulate Victoria's agricultural industry and eventually include meat, seafood and poultry.

"A lot of it will be grown in the area, including Werribee South, which is just a drop kick away, but we'd hope to export fruit and vegetables from all over the state," Mr Costa said.

Avalon managing director David Fox recently said he was "90pc sure" of receiving government approval to start building by the end of the year, which would create more than 500 jobs in the first stage of the project.

A deal with Malaysian budget carrier AirAsia to base its international operations at Avalon was derailed last year after the Federal Government's surprise decision to reject Linfox's original application.

Mr Fox said issues with customs, quarantine and immigration had been resolved.

But the State Government's bid to build a $1 billion wholesale fruit and vegetable market in Epping continues to founder, as a rival bid in Dandenong by a private consortium begins to gain momentum.