The initial cost will be matched by state government funding, with a further $80,000 a year required for monitoring costs and software upgrades.

Plans for a camera network were first proposed in January following the successful use of CCTV by councils such as Ballarat, Geelong and Melbourne.

Footscray traders have welcomed the news but maintain that a camera network should only be one piece of the crime-prevention puzzle.

"We would be happy to see the cameras come in," Footscray Traders Association spokesman Grant Miles said.

"But we would hope that they would not be the end of it. At the end of the day, the best thing to prevent crime is more police on the street."

The expense of the camera network also surprised Mr Miles, who believed costs could be reduced by using the existing parking camera network. "The focus should really be on safety instead of ripping money out of the pockets of the consumers," he said.

Inspector Ian Geddes, of Victoria Police, praised the efforts of outgoing CEO Kerry Thompson in getting the project off the ground.

"The CCTV proposal we worked on was the culmination of a great partnership between council and local police."

Details on how many cameras would be used in central Footscray and who would be monitoring the feed are still to be confirmed by the council.