A state funeral will be held for comedy legend Barry Humphries in Sydney, after his family declined an offer of a Melbourne service.

The Melbourne-born actor died aged 89 in Sydney last month following complications from hip surgery.

The Victorian government reached out to his family to discuss a state service but they refused the offer and instead opted for the event to be held in NSW.

Victorian Premier Daniel Andrews said his government made the offer in good faith and wasn't aware of the reason why the family chose Sydney over Melbourne.

"The family decided to have it in Sydney. That's ultimately their call," he told reporters on Wednesday.

"There could be multiple opinions within that family. But that's a matter for them and we should respect their privacy."

Details around the funeral preparations are still be finalised and will be shared at a later date.

Prime Minister Anthony Albanese said last week the state funeral would be co-hosted by the federal, NSW and Victorian governments.

Mr Andrews wasn't sure what role his government would play or whether Victorian taxpayers would be asked to foot part of the bill.

Humphries delighted and outraged audiences for more than half a century with satirical characters including Dame Edna Everage and Sir Les Patterson.

The entertainment legend is survived by his wife Lizzie Spender, four children and 10 grandchildren.