JIM STYNES will be honoured with a State funeral, Victorian Premier Ted Baillieu announced on Tuesday.

The much-loved Melbourne legend lost his long battle with cancer on Tuesday morning and the Premier moved swiftly to announce the decision.

"I have spoken to his family and they would be pleased to accept a state funeral," Baillieu said from the MCG.

"I think Jim Stynes was an exceptional individual, but I also think he's an exceptional Victorian. He's seen in that light, I believe, by every Victorian.

"He wasn't just a footballer. He was an extraordinary family man and somebody who reached out to so many young people, in particular, and the state is honoured to be able to support his family and provide a state funeral."

The Premier was at the MCG to launch the 21st season of the TAC Cup competition.

Before official proceedings got underway he led a group of TAC Cup representatives out onto the ground where he placed a Sherrin in the centre square for a minute's silence.

"There's a certain deep sadness right across Victoria, Australia and other parts of the world today," he said afterwards.

"The passing of Jim Stynes is really a moment in this state's history which I think everybody will be very moved by.

"Jim Stynes was, in many respects, the classic Victorian - a young man who came here from overseas with ambition and aspirations.

"He charmed everybody he met, he worked his butt off, succeeded, embraced the values and culture of our state and our nation and in the process, I think, won the hearts of every Australian and every Victorian and certainly every sports lover.

"I'm only too proud to be able to have this moment to say, on behalf of all Victorians, 'Jim Stynes, we thank you for everything you've done for this state. Thank you for what you've done for the game of football and sport in general and thank you for reaching out'."

A date for the funeral has not been announced.

The Stynes family asks that in lieu of flowers, donations be made to either The Jim Stynes Future Fund or Peter Mac Cancer Foundation.