Melbourne's Lost Dogs Home will be investigated over concerns it kills too many dogs and cats.
Agriculture Minister Jaala Pulford said she had listened to people's complaints about the home.
"People are contacting us in all manner of different ways to express their concern, that's why we've asked for this investigation," Ms Pulford told Fairfax radio on Thursday.
The home reportedly euthanised a dog a day after its owner called up trying to find it.
Andrew Tribe, chair of the Lost Dogs Home, said staff were passionate about animals and their welfare.
"Every one of us at The Lost Dogs Home loves animals, and every animal that is put to sleep is a tragedy," Mr Tribe said in a statement.
"Over the last few years, we've reduced our canine euthanasia rate substantially - down to 13 per cent - and there is more work to be done."
Mr Tribe said a review begun in December was continuing, but the home wanted to reduce the number of animals it euthanised.
"We want to throw our doors open to those rescue groups who are best placed to help us, with plans to appoint a dedicated rescue co-ordinator."