Daniel Andrews has vowed to rename the Maroondah Hospital the Queen Elizabeth II Hospital ©Getty Images

Victoria's Premier Daniel Andrews has vowed to rename Maroondah Hospital after Queen Elizabeth II, under planned upgrades which could cost AUD1.05 billion (£617 million/$702 million/€702 million).

Andrews has promised to alter the name of the hospital in Melbourne's East Ringwood suburb "as a mark of respect to her unwavering commitment to healthcare and our community" if he is re-elected.

Maroondah Hospital currently has an indigenous name, and the proposal to drop it has met some backlash in the region scheduled to host the next Commonwealth Games.

Andrews has said the redevelopment and expansion of the hospital's facilities could cost up to AUD1.05 billion, with a new emergency department, specialist care areas and more than 200 extra beds among the planned changes.

New facilities would begin to open in stages from 2029, which is three years after Victoria 2026.

"This redevelopment means the growing eastern suburbs will have a hospital to keep providing them with the best possible care," Andrews said.

"And we'll keep doing what matters.

"Hospitals, healthcare and the healthcare workers Victoria needs."

The commitment to swap the indigenous name for the Queen's has received some backlash, with critics concerned by the symbolism of replacing an indigenous name with that of a British monarch.

First Nations people suffered heavy persecution under British rule from 1778 and 1901, while Australia retained the monarch as head of state after its independence. 

Victoria's First Peoples' Assembly, an elected body representing the indigenous population, is among the groups to have denounced the decision.

Co-chair Marcus Stewart accused the Labor Government of making Victoria "culturally unsafe" for the group.

He added: "This is a stark reminder of why treaty is so critical, it can put an end to the hurtful platitudes of the powerful."

The Victorian Government and Traditional Owners and Aboriginal Victorians started a process of creating a treaty in 2016, with the final result aiming to formally recognise the rights, cultures and status of indigenous peoples.

Federal Greens Senator for Victoria Lidia Thorpe, who became the first indigenous women to be elected to the state's Parliament in 2017, called the declaration an "insult".

"This is not what treaty looks like, Dan," Thorpe wrote on Twitter.

"Maroondah is a Woiwurrung word meaning leaf, which symbolises Maroondah's green environment.

"What an insult to now colonise us, again."

More than 5,400 people have signed an online petition protesting the plan.

Andrews has defended the name change, promising that the local council would keep the name "Maroondah" and that re-naming the hospital would have "no impact" on developing a treaty.

Hospitals are named after Queen Elizabeth II in Brisbane and Adelaide, while a medical centre in Perth has been attributed to her.

The Queen opened the Commonwealth Games when Melbourne hosted the event in 2006 and her successor, King Charles III, will be invited to do the same when Victoria stages the first regional Commonwealth Games in 2026, according to Andrews' office.

State elections are scheduled in Victoria on November 26.