Hopes that Alcoa's Portland aluminium smelter could be saved

It's hoped a deal is close to being announced to keep Alcoa's aluminium smelter operating in southwest Victoria.

There were fears the troubled plant would close, after a generous State Government electricity subsidy ended and a power outage cost the company millions.

But a joint statement from Alcoa and power company AGL, as well as the Victorian and Federal Governments, is the strongest indication yet that the plant will remain open.