Melbourne City Council has back-flipped on it’s decision to cancel the Moomba festival with the event to go ahead across the Labor Day long weekend.

Lord Mayor Sally Capp described the decision as a “mistake” and said the response from the community that it should go ahead was “loud and clear.”

“It was a mistake, we’ve absolutely listened to the community,” she told Dee Dee on 3AW Afternoons.

“Given the response to the cancellation news we’ve doubled down our efforts and we announced today that we are going out with Moomba 2.0.”

It comes after it was revealed the Victorian government was not made aware of the call to axe the event, and said there had been a “mix-up” in communication with City Hall on Friday morning.

Cr Capp confirmed the state government hadn’t been notified.

“We did have some miscommunication in the cut and thrust of a normal day,” she said.

“Importantly our teams didn’t connect and that meant frustrations for the minister.”

The council has announced a revised plan known as “Moomba 2.0” which will be held without the traditional parade, water skiing and birdman rally.

There will still be rides, performers and food trucks with buildings across the city to be lit up in red as a sign of love for Melbourne.

Click PLAY to hear the interview below