Details of the scheme, based on breaking the Woolworths discounted petrol initiative, are expected to be released sometime this week.
Reports say Shell has been tough at the negotiating table, and has locked in a deal that has given it a strong profit margin.
Melbourne will be the first trial area of the Coles plan to run a $1 billion per year business selling petrol and fast foods from sites which previously were operated by Shell.
Sources say the effort may cost Coles Myer up to $230 million to buy out over 400 of the franchisees that operate Shell petrol stations across Australia.
