The funding, from the LEW Carty Charitable Foundation, will allow biomedical researchers to study chronic diseases affecting regional Victorians including cancer, heat disease, diabetes and sexual health.

Research Associate Professor Todd Walker said the funding signalled a long-term commitment to developing regional biomedical research.

"The Victorian Burden of Disease study has shown that there are considerable differences in health status between city and rural people, with rural Victorians more likely to suffer from a range of adverse health conditions and likely to die earlier," Associate Prof Walker said.

"In particular higher rates of disease burden due to heart disease and cancer were identified in rural populations."

The laboratory will be located in a new biomedical building at the Mt Helen Campus.