The City West Police Station will be built in Spencer Street in Docklands.
The Acting Premier Peter Ryan says construction of the 12 storey complex will begin next year.
Almost 300 jobs will be created and is expected to be completed in 2015.
Mr Ryan says the consolidation of police services will also help to resolve issues of overcrowding and security.
"Because this is a purpose built facility, police will have the state-of-the-art available to them in the way in which they are able to operate," he said.
"That in turn will mean a lot of the deficiencies that currently apply in current buildings, they will be overcome, and police will have this new facility available to them.
"This will be an enormous and very obvious presence of police up that end of the city."
Acting Chief Commissioner Tim Cartwright says the new facility will provide a vastly improved headquarters for three of the force's busiest departments.
"It really will be a jewel in the crown for Victoria Police and our mission to provide the best possible policing services to the community," he said.
"The new facility will be highly visible, providing reassurance and enhanced security for Victorians going about their daily business.
"It will allow us to project a strong police presence in the docklands area, at Southern Cross, and in the nearby entertainment precincts, including King Street.
"By centralising major crime investigation and intelligence teams in a purpose built facility, we will enable policing services to be delivered with greater cohesion and efficiency."
New super police complex
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