Member for Wannon Dan Tehan made the announcement in Canberra on Wednesday.

The money will allow researchers at the newly established ARC Centre of Excellence for Dark Matter Particle Physics to study dark matter at Stawell.

The centre is led by Professor Elisabetta Barberio and based at the University of Melbourne.

Mr Tehan said the new centre of excellence would take advantage of the underground physics lab in Stawell.

"The Stawell Underground Physics Laboratory will be built deep underground at the Stawell Gold Mine to allow researchers to conduct experiments that rely on precise measurements using some of the world's most sensitive scientific equipment," he said.

"We can't see dark matter but we know it exists and unlocking its secrets has the potential to transform our understanding of the universe.

"This project will involve the intersection of particle, nuclear, and quantum physics as well as particle astrophysics to pursue the discovery of dark matter particles."

Mr Tehan said the discovery of dark matter would create a completely new branch of physics and particle astrophysics.

"This centre of excellence will bring together a diverse field of expertise, with national and international experts working together to further our knowledge," he said.

Last month, the laboratory received.$5 million from the state government.

It followed the federal government's allocation of $5 million earlier in the year.

The money would allow works on the laboratory to start.

Northern Grampians mayor Kevin Erwin said the investment would provide a huge boost for Stawell and the wider Wimmera region.

"We already received money to build the laboratory, and now this money will see all the research for the project," he said.

"It really is a big boost for us - it's very exciting."

Cr Erwin said it was great to see substantial investment in regional Victoria.

"The federal government has been great supporters of this project and it's a huge win for the town," he said.

"I don't think people realise just what it means for Stawell - we'll have international professionals coming and going, which will raise the bar for us.

"We are home to the only laboratory of this kind in the southern hemisphere.

"Scientists around the world have been trying to discover what dark matter is, and this will be the only particle physics lab in the southern hemisphere, so it's a great story for Stawell and our region."

Cr Erwin said council was also eager to work with the community to unlock opportunities in education and tourism in relation to the project, given the large amount of interest that has surrounded the laboratory since the funding announcements.

"The laboratory can also be used for a broad range of other research purposes, including biological and cancer research, geosciences and other engineering activities," he said.

The laboratory will provide ultra-low background research facilities needed in the search for dark matter and will be one kilometre underground within the Stawell Gold Mine.

University of Melbourne vice-chancellor Professor Duncan Maskell said this was a significant investment that set Australia up as a leader on the world stage in the search for dark matter.

"I congratulate Elisabetta and her team on their tremendous work to date and thank the federal government for its support of this research, which might very well change how we look at the world," he said.