Environment Minister Steve Dimopoulos announced on Tuesday a dingo unprotection order would continue in northeast and eastern Victoria until January 2028.
This permits the culling of dingoes on private land and along the boundaries of public land.
Dingoes will still be able to be killed without a permit on private land in the all of Victoria but remain protected in the state's northwest where numbers are critically low.
Lethal controls will not be permitted on private or public land in these areas and more than $2 million will be allocated to farmers to adopt dingo management strategies.
The funding will be put towards trials, research and on-ground advice for non-lethal dingo management that will protect livestock in the region.
Mr Dimopoulos said the management of dingoes was a balancing act between several competing factors.
"We are striking the right balance between protecting our vulnerable dingo populations while giving farmers the ability to protect their livestock, and we will regularly engage to ensure settings continue to achieve this balance," he said.
The Victorian Farmers Federation (VFF) president Emma Germano said the decision was a move in the right direction for farmers with livestock but more needed to be done to implement the same policies for the entire state.
"This is a sorely needed win for common sense," she said.
"Farmers in Victoria's northwest are still exposed to the horrors inflicted by wild dogs on their livestock and we are working to reach a workable solution as soon as possible.
The remaking of the order follows a review of dingo conservation and management with feedback from traditional owners, farmers and landholders.
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