"We are very concerned at the growing gang violence and lawlessness in Victoria, in particular in Melbourne," Malcolm Turnbull told reporters in Sydney on Monday.
"This is a failure of the Andrews Labour government."
The prime minister said Victoria Police had the capacity to do the job but needed better directions from the state government.
"But what is lacking is the political leadership and the determination on the part of Premier Daniel Andrews," Mr Turnbull said.
He said authorities need "leadership, the direction, the confidence of the government to get on with the job and tackle this gang problem".
The state government said it didn't want to play political games about youth crime.
"We will take our instructions and advice from Victoria Police," acting Roads and Road Safety Minister Phillip Dalidakis told reporters in Melbourne.
"We certainly will not be taking suggestions or advice from a bloke who can't even put on a life vest when he's on a boat in Sydney Harbour."
The prime minister was fined $250 in December for not wearing a life jacket while moving his dinghy near his harbour-side Sydney home.
"If Malcolm Turnbull wants to play games instead of working in collaborative effort, then he can do so and talk to himself," Mr Dalidakis said.
Victoria Police has also defended its efforts to address youth crime.
"I'm very confident where we're going and how we're tackling youth crime in this state," Deputy Commissioner Andrew Crisp told reporters in Melbourne.
Mr Crisp said while recent crime statistics show police are locking up more people, they are also increasingly working with community leaders and youths.
"What Victoria Police does very, very well is work with the community," he said.
"We don't want to be locking up young people. We want to be proactive, we want to prevent crime in the first place."
The state opposition believes federal intervention is needed to make sure gangs "are met with the full force of the law".
"There is an emergence of a gang culture in Victoria, which is attracting national attention and it must be tackled, and it must be tackled urgently," shadow attorney-general John Pesutto told reporters.
"These gangs don't fear police, they don't fear community, and they certainly don't fear the consequences."
