A dispute has emerged within the Victoria Labor Party regarding the redevelopment of Melbourne's public housing towers.

Labor for Housing, backed by key construction unions and party branches, demands more public housing units and opposes selling public land to private entities.

Construction unions criticize the government's current redevelopment proposal as insufficient, urging a 50% increase in social housing units.

The party is also experiencing internal conflict over the Israel-Palestine issue, with debates anticipated at the upcoming state Labor conference.

The state Labor conference will tackle pressing issues, including the Gaza conflict, state budget reductions, and public housing plans.

Decisions made at the upcoming conference will be crucial for determining the direction of public housing strategies in Victoria.