Victorian Premier Daniel Andrews has requested an immediate halt to the East West Link project.
He wrote to the East West Connect Partnership after a "whole raft of legal advice" and instructed it to cease work on the road tunnel.
A consortium spokesman said it had received Mr Andrews' letter on Friday but would not comment further.
The premier also says he will make good on his promise to release confidential documents relating to the project.
The business case will be given to the media in a budget-style lock-up on Monday, with the contract to follow at a later date.
"I'll let you draw your own conclusions about the journey that this botched, rushed, costly and until this point secretive project has been on," Mr Andrews told reporters on Friday.
However, he was confident Labor could work with the consortium on other projects, such as removing 50 deadly level crossings around Melbourne from early 2015, which was a key election policy.
"They build things and the Labor government has many, many things we want to build," Mr Andrews said.
He said he had a positive conversation about Labor's infrastructure plans with Prime Minister Tony Abbott earlier in the week.
Mr Abbott is unhappy with Labor's pledge to axe the East West Link and says $3 billion the federal government reserved for the project is not transferable.
Mr Andrews says he is confident of a strong partnership between the governments, particularly over the redistribution of the money pledged.
The Labor government could have to pay up to $1.1 billion in compensation to the consortium if the East West contracts are torn up.
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