Volunteer Fire Brigades Victoria had been locked in a high-profile Supreme Court battle against a workplace agreement between the CFA and the United Firefighters Union.

The volunteers claimed the deal undermined the role volunteers played and was in breach of the CFA Act. But that challenge was on Tuesday morning withdrawn.

The decision followed the introduction of federal legislation by the Turnbull government forcing all emergency services bodies to consult with volunteers over workplace agreements.

In a statement confirming the court challenge had been withdrawn, Volunteer Fire Brigades Victoria said the federal overhaul of the Fair Work Act had allowed it to dump the "costly and resource intensive" legal action.

But it also warned the legal battle, which cost the volunteers' association $600,000, may not yet be over, vowing to fight any future legal challenge by the United Firefighters Union.

"There is still a possibility that further legal action might be required given that the UFU have claimed they will challenge the Fair Work Act amendment in the High Court and there is also real possibility that VFBV will need to defend the rights of volunteers in the Federal sphere so we will continue fund raising to support our legal action and further campaign efforts," the statement said. 

CFA chief executive Frances Diversaid  the result was a milestone for the CFA and would allow it to move to the next stage in resolving the workplace dispute.

She said there had been no merit in the volunteers' case.

"We really hope it is an end to the hostility. We've been very disappointed with the action of the volunteers association in taking this to the Supreme Court," she said.

The CFA will now move to put the new workplace agreement to a vote among its paid employees in the next few days, before a referral to the Fair Work Commission.

She insisted the CFA wanted to strengthen its relationship with its volunteers. 

The decision will come as a significant relief for Premier Daniel Andrews, who personally brokered the deal earlier this year despite previously claiming the union's demands were unworkable.

Mr Andrews has been under intense pressure ever since amid concerns the agreement would give the union excessive power over CFA management decisions.

VFBV chief executive Andrew Ford told reporters that cost was not an issue in halting the legal action.

"You can't win twice. We've won the issue by change to the federal law," he said.

The controversial agreement has already led to a string of sackings and resignations, including Jane Garrett from the emergency services portfolio, CFA chief executive Lucinda Nolan, CFA chief fire officer Joe Buffone and the CFA board.

Emergency Services Minister James Merlino said the Fair Work Commission was always the appropriate forum to resolve the dispute, calling the court a "completely and utterly unnecessary political stunt". 

"It is disappointing that the VFBV have chosen to take such a divisive, costly and unnecessary course of action," Mr Merlino said.

Following a vote of career firefighters, the agreement will be referred to the Fair Work Commission.