It is understood Mr Albanese will visit Launceston to make an announcement on a new safe driving program, but the council is keen to discuss potential new funding for its flood levee project.

The council last week revealed its budget for the project had blown out by $20 million to more than $59 million.

It held urgent talks with Premier David Bartlett to discuss the shortfall, saying it hoped the State and Federal governments would provide more funding to the project.

Yesterday Mr Bartlett pointed out that the council had originally agreed to meet any potential budget blowouts when it applied for funding two years ago.

"Under the deed of agreement between the Federal Government, the State Government and the Launceston City Council, the State Government has agreed to contribute $13 million out of $39 million," Mr Bartlett said.

"Under the terms of the deed, the council agreed to meet any additional cost overruns.

"While the State Government has already made a significant contribution to the Tamar River flood project, it is prepared to have further discussion with the Launceston City Council.

"The Government fully appreciates the significance of the matter.

"At this stage the most important thing is for the Launceston City Council to commence works on the flood levee as soon as possible, while the Government works through the additional funding requirements with the council."

The council has set aside $6.3 million to begin the project this year.

Launceston Mayor Albert van Zetten and general manager Frank Dixon have revealed they met Federal Attorney-General Robert McClelland last week to discuss the shortfall, and hoped to meet Mr Albanese today.

"Mr McClelland is very familiar with the issue now, and he has been briefed on this very well," Alderman van Zetten said.

"This will be an ongoing process that I am happy to pursue for as long as I am Mayor to ensure we do obtain the money."

The council embarked on the flood levee project in 2007, after an independent report found Invermay would be inundated in a major flood, displacing thousands of people and causing more than $110 million in damage.

However, the budget for the project - which comprised $13 million each from the council, State and Federal governments - blew out after the council compulsorily acquired 18 properties in Lindsay Street last year.

It is understood valuations on the properties undertaken in 2004 later proved to be inaccurate.