A cash reward of $1 million is on offer to help Melbourne police solve the suspected murder of local Shari Davison 25 years ago.

The 27-year-old Footscray woman was last seen alive by her boyfriend at the Crown Casino at 7am on the morning of February 18, 1995.

Davison was reported missing by her employer four days later and police believe she was killed.

Detective Inspector Andrew Stamper says the reward for information about her disappearance has been lifted from $50,000 to $1 million.

The Director of Public Prosecutions is considering granting anyone who can identify a principle offender or offenders indemnification from prosecution.

“People’s circumstances can change over the years and someone who may not have wanted to provide information to police previously may now feel ready to do so,” Det Insp Stamper said in a statement on Wednesday.

Ms Davison left a Dandenong strip club with a female colleague about 10:50pm on February 17, 1995, before visiting a sports club in Croydon for a short time.

They moved to the Mentone Hotel, where they stayed with Ms Davison’s boyfriend and another male friend until 1am.

Ms Davison and her boyfriend went to a home in Hampton before leaving at 2am to go to the Crown Casino.

Her boyfriend left the casino at 7am, but Ms Davison stayed for 40 minutes before catching a cab back to her Footscray home.

Later that day, she made two calls from a payphone at a service station on Ballarat Rd, Dandenong, between 12-2pm.

One call was to her boyfriend asking to meet so she could get some personal items including her phone charger, and the other was to tell her employer that she would be at work that night.

She never arrived.

Det Insp Stamper said what Ms Davison’s family have lived through over past 25 years is unimaginable.

“At the time of her death, Shari had a loving family and a young son who misses her very much and still deserves answers,” he said.

“I can absolutely assure Shari’s loved ones – along with the person or persons responsible for her death – that detectives from the Missing Person Squad remain committed to this investigation.”