As many as 150 Victorian coal workers will be given voluntary redundancies and their jobs handed to retrenched workers from the nearby Hazelwood coal-fired power station.
AGL and EnergyAustralia coal workers in the Latrobe Valley will be given redundancy packages - with government support - and their jobs will be transferred to former Engie staff.
"This has not been done before. It has taken a lot of work," Premier Daniel Andrews said in Morwell on Friday.
French energy giant Engie has decided to shut the Hazelwood mine and power station on March 21, putting hundreds of people out of work.
The final job transfer agreement has not been signed off but Mr Andrews said AGL and EnergyAustralia were fully committed to it.
"It's at least 150 jobs, we hope it could be more," he said.
Victoria will financially support the redundancy transfers, but Mr Andrews did not reveal how much money it would cost the state.
He said the final agreement would be signed "quite soon".
The upcoming closure of the Hazelwood station has been blamed for rising power prices.
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