AMA Victoria President Dr Harry Hemley said the association was aware of a ''huge shortage'' of doctors in Ballarat and the package would provide incentives to remain in regional and rural areas.

An AMA survey found 37 per cent of GPs surveyed who provide services to country hospitals do not plan on practising medicine in rural parts of the state beyond five years.

The proposed package would include retention allowances, payments for after hour calls and incentives to re-locate to country areas. It also recommends payments for after-hours or overnight phone consultation services.

"We are hoping that it will keep doctors in Ballarat for a period of time that will allow the younger doctors to train and take up their places," Dr Hemley said.

The AMA is urging the State Government to fund the package in the May budget.

Senior program co-ordinator Angela Aldred of the Ballarat and District Division of General Practice said the package had significant implications for regional areas.

She said Ballarat had been classified as having a shortage of general practitioners in December last year.

"Anecdotally, it's still hard to find a family GP," she said.

"It (the package) would make a difference, it would allow greater incentives for the recruitment of doctors to Ballarat and outlying towns.

"Generally speaking most GPs like to work in metropolitan areas unless they're committed to rural practice."