Health minister Greg Hunt has secured Victoria's signature for the 2020-21 to 2024-25 National Health Agreement.
Under the agreement, the federal government will provide $32.4 billion over the five years, an additional $7.3 billion in funding.
"I welcome the constructive engagement with the Victorian Government as this funding is vital for Victorian patients," said Mr Hunt.
"In particular, I welcome the cooperation on delivering funding certainty.
"It is agreed that changes in methodology will be implemented through a transition period to ensure accurate information is collected and provided to the independent funding body."
Mr Hunt said the new funding is in addition to the $460 million the federal government is providing to a range of health medical research centres throughout Victoria, including the Centre of Excellence in Cellular Immunotherapy at Melbourne’s Peter MacCallum Cancer Centre.
"Seven of Australia’s eight states and territories are now covered by the record funding agreement, including three Labor governments and three Liberal governments," said Mr Hunt.
"We encourage Queensland to join their colleagues in securing an additional $8.4 billion for Queensland public hospitals and patients, providing more doctors, nurses and services."
The federal government will provide a total of $131.4 billion through the new National Health Agreement, an increase of $31.4 billion.