The changes follow a number of controversial decisions by the Victorian Institute of Teaching, which allowed teachers accused of serious misconduct to keep their registration.

One Melbourne teacher paid students for massages, told a story about urination and cried in front of his pupils.

Education Minister James Merlino, who recommended the review, says the government will make a series of legislative changes in light of the report's 34 recommendations.

"Child safety and wellbeing must be front-of-mind at all times. That's why we're taking action to overhaul our teaching registration system and put students first," he said in a statement on Friday.

Among the recommendations is the dumping of institute disciplinary hearings responsible for determining sanctions against teachers.

The watchdog has reopened an investigation into former Caulfield Junior College teacher Chris Adams, whose registration remains despite him being sacked in 2017, a decision upheld by the Fair Work Commission.

Mr Adams paid two students to give him a massage in exchange for "earn and learn" dollars, allowed kids to watch fight scenes from an R18-rated film and told stories, including one about a priest urinating on a girl's dress, the department found.

The teacher told students not to tell anyone about the stories.

Under the recommendation, misconduct matters could instead be referred to the Victorian Civil and Administration Tribunal, to avoid the institute acting as "prosecutor, judge and jury".

It's a proposal rejected by the Australian Education Union's Victorian branch, which believes teachers' firsthand experiences are vital for addressing inappropriate behaviour.

"The teaching profession has a critical role in maintaining its own high standards, and the voice of peers is a vital part of that regulation," union state president Meredith Peace said.

The review by former Justice Department secretary Penny Armytage found there was "tension" within the regulator when it came to balancing child safety and the interests of teachers.

It also recommended changes to the watchdog's organisational structure, after hearing allegations of bullying and a "toxic" workplace culture.

Lesley Lamb, institute chair, welcomed the report and said the regulator would begin a "systematic and thorough transformation".

CHANGES TO VIC TEACHER REGISTRATION

* Improved processes, including migrating to online

* Education about teacher quality

* Better information-sharing with Working with Children Check

* Reform of the teacher disciplinary system.

Australian Associated Press