Greater Shepparton City Council has agreed to sign a three-year contract with five tenders at $165 000 a year and it can extend the contract to five years, which would cost $825 000.
But councillor Kim O'Keeffe voiced her disappointment that none of the tenders were local.
“It was a little disappointing locally we didn't have perhaps the businesses that could accommodate this tendering process,” Cr O'Keeffe said.
“But it is what it is and we're pleased we could have the trees available to us.”
The five tenders are Established Tree Transplanters, Flemings Nurseries, Green Corp, Local Tree Care and Rochester Native Nursery.
Cr Fern Summer said greening Greater Shepparton was "probably the single best initiative" council was undertaking.
She said trees had many benefits for community members, including improving mental health, sustaining wildlife, moderating weather extremes and increasing property value.
“It's probably going to take many years for us to realise and appreciate the work that is being done now,” Cr Summer.
“It's a long-term initiative for future generations and I fully support it.”
Cr Dennis Patterson said he had noticed a substantial amount of trees being planted across Shepparton, Mooroopna and Tatura during the past 15 years.
“Now they (trees) are reaching maturity and it just gives the place a whole better look,” he said.
“Our main streets are becoming shaded a lot of the time. It costs money but it's well worth it and is a great investment for the future."