The Member for Northern Victorian used an adjournment session in parliament last week to call for a commitment from Roads Minister Jaala Pulford.
The News understands the business case for stage one will be released this month.
Ms Lovell said the bypass would provide a second Mooroopna-Shepparton river crossing.
“The Shepparton bypass is a vital project that will improve freight movements to domestic and export markets in Melbourne, throughout regional Victoria and interstate,” she said.
“Just as importantly, the project will improve safety for Shepparton residents, who are forced to deal with heavy vehicles travelling through the Shepparton CBD every day.”
Earlier this year, Member for Nicholls Damian Drum reaffirmed the Federal Government's $208 milllion commitment to fund stage one of the bypass.
“It is now time for Jaala Pulford and the state government to provide their share of funding,” Ms Lovell said.
“The Shepparton community has waited long enough and the Andrews Labor Government needs to provide their funding contribution to the Shepparton bypass in the next state budget.”
Member for Shepparton Suzanna Sheed also supports the Shepparton bypass and called on the Victorian Government to release the business case in August.