Victoria is reviewing state funding for state's Islamic Council after it asked for money to create safe spaces for young Muslims to express "inflammatory" views.
Premier Daniel Andrews says he's very troubled by the Islamic Council of Victoria's suggestion for safe spaces where Muslim youth "could be radical".
The ICV made a submission asking for taxpayer-funded "safe spaces" where young Muslims can express themselves openly without being judged, even if those views are inflammatory.
Mr Andrews says he is concerned about the proposal and the council's state funding will be reviewed.
"There is no safe way to rail against the West. There is no safe way to rail against the values that we hold dear," Mr Andrews told reporters on Thursday.
"I am very troubled by the suggestion that we might have a space where people could be radical as part of a deradicalisation program. That makes no sense to me whatsoever."
He said no such program would receive Victorian government funding.
"We will be having a very close look at the Islamic Council of Victoria's funding in a broader sense," Mr Andrews said.
The council's June 1 submission to a parliamentary inquiry on religious freedom also called for federal counter-terrorism and deradicalisation funding to be used for the program.
"(We would like) existing Commonwealth CVE and CT funding re-allocated to create safe spaces urgently needed by Muslim youth to meet and talk about a range of issues in emotional terms," the submission says.
"(A space) where they can be frank and even use words, which in a public space would sound inflammatory."
The submission says young people are unable to express anger or use certain facial expressions without becoming a target for surveillance.
"We are not asking for forums for youths to go berserk in terms of expressing extreme views," ICV vice president Adel Salman told 3AW on Thursday.
"We are asking for forums for youth to express themselves in various ways with various emotions and not to be judged."
The council did not respond to AAP's requests for comment.
It runs Victoria's deradicalisation program, which terrorist Yacqub Khayre was a part of until he killed a man and injured three police in a siege on Monday.