The Age newspaper has reported the state government ditched plans for a tunnel between the Melbourne CBD and Sunshine.

This would mean trains would have to enter the city through the new Metro Tunnel, which would congest already busy lines.

City of Greater Bendigo Mayor and Regional Cities Victoria chair Margaret O'Rourke said councils were still waiting for the state and federal governments to come to an airport rail decision.

"We've been briefed on various options but Regional Cities Victoria has not come to a conclusion on what is best," she said."We will be having a meeting in late February.

"We always advocate for improved and more frequent services. There are many regional cities and the range of situations is broad."

Read more: Melbourne Airport rail link decision could hamper Bendigo V/Line commuters: Rail Futures Institute

Rail Futures Institute president John Hearsch said the organisation had put forward a proposal to the government for a connection on the Bendigo line between Clarkefield and Tullamarine.

That would mean Bendigo trains would bypass the suburban system and go directly to the airport.

Cr O'Rourke said the City of Greater Bendigo had not been briefed on that proposal.

"We believe we will have someone from the Rail Futures Institute who will talk to us soon," she said. "There have been more than two proposals at various times and I haven't seen all of that information.

"It's too early to say, but we want to make sure we have a good connection and regional cities have access to that service.

"We would be keen to understand and look through options from a Bendigo perspective."

Minister for Transport Infrastructure and Member for Bendigo East Jacinta Allan said the state government was working with the federal government on all options for the airport rail link.