Victorian MP Moira Deeming has vowed to fight moves to expel her from the parliamentary Liberal Party after her involvement in an anti-trans rights rally attended by neo-Nazis.

Her attendance at Saturday's rally prompted Opposition Leader John Pesutto to announce plans to expel her from the parliamentary party.

"My intention is to fight and to remain a member of the team. I hope that my colleagues draw the line and say enough, and that I am able to fight alongside them," Ms Deeming said in a statement.

"I hope that when I have the opportunity to present the facts as they occurred, that my colleagues will stand on principle and vote down the motion to have me expelled."

The "Let Women Speak" event began outside Victoria's Parliament on Saturday and was then attended by a group of masked men performed the Nazi salute multiple times. It also attracted a larger counter-protest in support of trans rights.

The Nazi salutes sparked widespread outrage and prompted Attorney-General Jaclyn Symes to announce plans to introduce legislation to ban the gesture.

Ms Deeming defended her participation in the rally, which was organised by British anti-trans rights campaigner Kellie-Jay Keen-Minshull.

"Let me clear – I have done nothing wrong," she said.

In her statement, she accused "extreme left counter protesters" of infiltrating the event and assaulting speakers, police and horses.

She condemned the actions of the masked men, who she said were "later identified as neo-Nazis, who gate-crashed the Let Women Speak (LWS) event".

"Most of the LWS supporters did not realise who they were until they were being escorted out by Victoria Police, when they did the despicable Nazi salute," Ms Deeming said.

"I completely reject the beliefs of National Socialists (Nazis) and I have seen first-hand the impact that the Holocaust had on a family member. None of those organising the event had any involvement with these men."

On Sunday, Mr Pesutto declared Ms Deeming's position as "untenable" after meeting with her to discuss her involvement in the rally.

Mr Pesutto on Monday said Ms Deeming was "actively involved in different ways in the organisation and promotion of this protest at which there were speakers with known links to neo-Nazis".

He said he did not tolerate any association with white supremacy.

"I won't have any of it," he said.

"These values that we saw on the steps of parliament were not consistent with the values I and the Liberal Party stand for."

Colleagues question move to expel MP

Senior Liberals speaking on the condition of anonymity have questioned Mr Pesutto's decision, saying Ms Deeming's views on trans rights were well known before the election.

The former teacher and City of Melton councillor used her inaugural speech last month to call for an inquiry into transition practices and criticised measures to include trans women in female-only change rooms and sports.

Despite Mr Pesutto saying it was the involvement of neo-Nazis that prompted action, others within the party said her expulsion would be viewed as a result of her stance on transgender rights.

They warned it risked alienating some of the party's base.

MPs told the ABC there was also concern about Mr Pesutto's timing, given the government was this week set to face pressure on a range of issues — Robert Redlich's IBAC letter, minister Danny Pearson's share portfolio and controversial legislation on protected sources for Victoria Police.

However, Mr Pesutto said he was "confident" the party would back him in a vote.

The Victorian government said it would ensure "considered consultation with a variety of groups" when legislating for Nazi salutes to be banned.