Construction on the Aurora development started in 2005 but only 850 homes out of a projected 8000 have been built or are under construction.

Places Victoria has identified 317 hectares of land on the 630-hectare site for which it has no contractual obligations and is considering selling.

The move could also lead to more medium density housing in Epping North.

Places Victoria will set up a panel of experienced builders, developers and investors to decide what to do with the undeveloped sections of the Aurora estate.

Places Victoria chief development officer Dominic Arcaro said all community infrastructure in the development plan for Aurora would be delivered either by Places Victoria or private developers.

"Community facilities will be delivered on these sites as part of an established planning framework for each of the sites and any developer would be expected to work within these frameworks," he said.

Mr Arcaro said it was expected the new model would bring land into the market quicker and help address housing affordability.

Aurora Community Association president Cara Horner said a public private partnership could be beneficial to residents in Epping North.

"It may be a positive thing to happen and help to speed things up with the development process because at the moment, from what I understand, they're very far behind with all the new releases of land."