The Melbourne Metro Rail project's business case is "underdone" and needs to capture more private funding, Prime Minister Malcolm Turnbull says.
The $10.9 billion project will build two new rail tunnels under the CBD, which will put five new stations around and under the city.
Victoria wants Canberra to tip in $4.5 billion to match the state commitment, with $1.9 billion coming from the private sector.
"What is underdone in that business plan is the way in which we ... are able to capture some of the very considerable value that will be created in property values, from the construction of that infrastructure," Mr Turnbull told reporters on Friday.
"You only have to look at what has been done with the cross-city rail in London to see an example of that.
"We have been very old-fashioned in the way we have looked at urban infrastructure, particularly rail infrastructure in Australia."
Mr Turnbull said the Melbourne Metro business case had scant detail and paid "lip service" to the idea of capturing value created in the private sector.
The prime minister has handed over $10 million to upgrade the business case.
But Victorian Treasurer Tim Pallas said the state had the project well in hand.
"My advice to him would be: worry about the things prime ministers should get on with. Don't pretend to be a merchant banker ... we'll look after the financing and the value," Mr Pallas told reporters.
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