An anti-racism campaign led by Christian leaders is gathering force in Bendigo in response to anti-Islamic protesters' opposition to a mosque project.

The protesters claim the $3 million mosque approved for East Bendigo could result in a terrorist attack and have targeted supporters by tying black balloons outside their homes and offices.

But embarrassed residents say these views do not represent them and, on Friday, they began an online petition calling for people to support multiculturalism and diversity in Bendigo.

On Saturday morning they will hold a rally, where hundreds of colourful balloons will be passed out with the tag "racism has no place in Bendigo". 

“We are proud of our history of multiculturalism,” Reverend Cynthia Page of Eaglehawk Uniting Church said.