Planning Minister Matthew Guy last week rejected a 2006 VicRoads plan endorsed by Moorabool Council to remove five elm trees, planted in memory of soldiers who died in world wars I and II, and build a roundabout linking Woolpack Road to the Western Highway.

The decision ends years of debate and frustration between the council, VicRoads, Heritage Victoria, supporters and objectors.

Mayor Pat Griffin, who said he was extremely disappointed, described the decision as a slap in the face for the council and an insult to the shire and the community.

But delighted Avenue Preservation Group president Damian Strangio said he was sure "all Australians" would applaud the decision.

He said many people had worked tirelessly to expose the "awful" proposal.

Dr Strangio was infuriated by reported comments by Cr Griffin referring to "the war" over the controversial plan.

"[It was] an absolutely disgraceful, insulting and inappropriate set of words, especially when talking about a war memorial. We need leadership, not this nasty, small-minded bitterness."

Council chief executive Rob Croxford said he was shocked by Mr Guy's announcement.

"It appears the minister does not think the shire understands the cultural and heritage significance of the avenue. There were no other realistically feasible road solutions."

Bacchus Marsh RSL president Stan Franklin said the decision was "unfortunate and regrettable" and he was disappointed Mr Guy did not consult the RSL, which was a vocal supporter of the plan.

"We wait with great expectation for what the alternative could be. I've been a part of this for four years. In the early days we looked at all the options."

Mr Guy said it was important to ensure the continuous, uninterrupted nature of the heritage landmark.

"The Bacchus Marsh Avenue of Honour and its magnificent, cathedral-like arching canopy is a living memorial to those who served our country."