A developer has reached a compromise with Victorian Planning Minister Richard Wynne over their $130 million King Street tower that was originally designed to be 268.75 metres but will now be 209.8 metres high.

Plans for the tower were submitted by Farinia Group before Wynne introduced interim planning controls in 2015, meaning the application had to be considered under the rules which applied when it was made. The tower has been opposed by Melbourne City Council, who fear it will be "an overdevelopment of the site" at 295-309 King Street.

The original plans were for 603 apartments with 99 studios, but will now be 431 apartments with no studios, only one, two and three-bedroom apartments. Setbacks from the street have also been increased.

The Plus Architecture-designed tower will replace two Edwardian buildings on the corner of King and Lonsdale streets. The site is in a part of the city considered ripe for high-density residential development.

"This project is in a part of the city undergoing transformation where we are encouraging well-designed development to accommodate Melbourne’s population growth," said Wynne. "We will continue to work in good faith with the property industry to negotiate good outcomes and push for quality projects."