In a move to ease congestion on one of our city's most complained-about stretches of bitumen, parking has been completely banned along the full length of Punt Road.

The idea was brought up by the previous state government in 2014, then flagged again by the Andrews government as one of seven key ideas to free up traffic flow on the crucial north-south arterial.

Ideas including a new bridge over the Yarra River, banning right-hand turns during peak hour and a fifth lane (which would require flattening up to 140 homes) were put forward in a consultants' report considered by VicRoads late last year.

The parking ban, which will be 24-hours, comes in to effect at the end of next month, on August 29, and will involve hefty penalties.

"People who are parking there will be towed away," Victorian Road Minister Luke Donnellan told the ABC. "There will be penalties for parking there which will be $155 and then a cost of $334 to recover their vehicle."

Four new car parks will be created for those who need parking along the Punt Road route, which VicRoads and Stonnington Council are working to finalise.

"My expectation is people will get used to this very quickly because there's been a high level of community consultation," Donnallan says. "We believe this will provide a more reliable journey, a safer journey in the sense we're not going to end up with the merging and the stop-start on Punt Road, and very much get people from one end to the other."

The state government will make more information available over the coming days.