There are fears Melton will be turned into a battleground next month when anti-Islam and anti-racist groups descend on the town.
Anti-Islam group True Blue Crew will hold a rally in High Street on August 28.
Two anti-racist groups, including No Room for Racism, are considering a counter rally.
Melton MP Don Nardella said True Blue Crew was “breeding fear”, dividing communities and creating conflict in the town.
“These people have no affinity to Melton,” he said.
“They don’t care about Melton; they don’t care about families and they don’t care about the people who live here.
“All they want to do is spread their fear and hate and bile and vitriol and racism here in Melton and they should stay home.”
True Blue Crew says it will rally against “the rise of Islam in Melton”, citing the Islamic school, a planned mosque and the Iqra Village.
On a Facebook page rally organisers said that Melton “will do whatever is required to prevent Islamic ideology from taking hold”.
But Mr Nardella said there had been no problems at the Islamic School, based at Victoria University’s Melton campus.
“Nobody’s been radicalised; God hasn’t smitten the good folk of Melton South there; the devil hasn’t risen all the dead to take over the world,” Mr Nardella said.
“The kids are learning, the teachers are teaching and the families are happy their kids are getting the best education they can.”
A spokesman for the anti-racist groups, Chris Peterson, said his group would make a decision this week on whether to hold a counter rally.
Superintendent Lisa Hardeman said Victoria Police was aware of the True Blue Crew rally and there would be a strong police presence, including a range of specialist units from the mounted branch, police operational response team, highway patrol and air wing.
Police will search for weapons.
“We understand people have a right to protest peacefully, but urging violence and hatred within our community is not a form of free speech and will not be tolerated,” Superintendent Hardeman said.
She urged parents to consider if it was appropriate for children to attend the rally.
Melton council chief executive Kel Tori said council was aware of the rally, but had not received an application for a permit.
