Energy giant AGL has agreed to re-hire up to 150 Hazelwood workers after its close in the coming weeks.

Premier Daniel Andrews visited Morwell today and at a press conference announced a $20 million transition scheme that will allow workers to transfer to other electricity generators, and early retirement packages will be offered.

On top of that, $85 million has also been announced for sporting and community facilities within the Latrobe Valley which is estimated to create around 500 new jobs.

The community sporting package includes:

 $46 million for a new Gippsland Regional Aquatic and Leisure Centre in Traralgon
 $17 million to redevelop the Gippsland Regional Indoor Sports and Entertainment Complex in Traralgon
 $4 million to upgrade Morwell Recreation Reserve
 $1.7 million to upgrade the Latrobe Sports and Entertainment Complex in Morwell
 $3 million to upgrade the Ted Summerton Reserve in Moe
 $1.4 million for the Sale and Traralgon Tennis Centres
 $5 million for 9 local reserves to be upgraded