The formation of the South Melbourne Hellas Soccer Club was completed over two amalgamations, with the first being in August 1959 and the second in early 1960. South Melbourne Hellas was formed via the merger of three different Victorian soccer clubs in Hellenic, Yarra Park and South Melbourne United.

The two Greek clubs, Hellenic and Yarra Park, had both experienced disappointing 1959 seasons. Yarra Park finished last in the 1959 Victorian State League (the top division) and faced relegation into the Metropolitan League Division 1 North. Hellenic had finished in second-last place in Metropolitan League Division 1 North in 1959 and faced relegation into Division 2 North.

Economic uncertainties at both clubs, combined with poor performances, made both Greek clubs see the benefits of uniting. The Greek community in Melbourne was also at the time expressing the need for a strong and united club in the Victorian State League, in order to glorify Hellenism and the cause of Greeks in Australia.