Prime Minister Malcolm Turnbull and Premier Daniel Andrews are expected to join Alcoa executives in Portland on Friday morning to announce the aluminium giant's continued operation in Victoria.

The federal and state leaders and key ministers are expected to jointly announce that a deal has been struck between Alcoa and power supplier AGL, ensuring the doors are kept open at Alcoa's 30-year-old smelter. Fairfax Media understands final details of the deal were still being nutted out on Thursday.

Alcoa's Portland smelter has been given a lifeline in the shape of a power deal. Credit:Damian White

Premier Daniel Andrews will break his holidays to fly to the state's far south-west with industry minister Wade Noonan for the announcement, also made possible by a $240-million assistance package from the state and federal governments.

The Prime Minister was in Victoria on Thursday and was expected to continue his visit with a trip to Portland. Energy minister Josh Frydenberg is also expected to fly to Portland. Outgoing Industry minister Greg Hunt - this week appointed health minister - is also expected to attend.