A consortium of architecture, design and engineering firms have presented a proposal for an elevated bike freeway to be built above the traffic of Melbourne’s CBD.

The $21 million design concept was two years in the making and would run between Flinders St and Southern Cross stations alongside the railway viaduct above Banana Alley.

Called the ‘B1 Veloway’, the project aim is to safely separate cyclists from pedestrians and cars, easing traffic congestion between Richmond and Docklands.

The Herald Sun newspaper in Melbourne reported that the design team, which includes Federation Square designer LAB Architecture, presented the plan to Transport Minister Terry Mulder and Lord Mayor Robert Doyle.

Consortium spokesman Michael Potter said the Veloway would be made from lightweight composite plastic, have wind deflectors and use solar-powered lighting, in order to be as green as possible.

Mulder told the Herald Sun the proposal was "exciting" and noted: "The group has clearly consulted widely and we look forward to examining the detail of this proposal.”