I am passing Menu items to View from ViewModel.
I think you're really close but missing the mark on MVVM slightly. I'm not sure what language/framework you're applying this in, so I'll answer generically. I know .NET is typical when you hear MVVM but the pattern can be applied anywhere.
Let me start by correcting your initial statement:
I am passing menu ViewModels to the View.
You are absolutely right to consider this view-specific model of a menu item to be distinct from your business domain models. Make sure you're calling them ViewModels as opposed to Models.
As for where you put them, you have a few options. You could put them in the same folder as your Models but name them distinctly as ViewModels. You can also give them their own directory, so your Models and ViewModels are not intermingled. This is all a matter of code organization, and either of these options is valid. Perhaps the latter (separate folders) is slightly cleaner.
Note, I didn't say where the ViewModels are passed from. A better way to think about how Models, ViewModels, and Views pass each other around is to describe where each are consumed. This also depends on your framework how things are passed around (or declared), but here's the basic idea.
The View can reference a ViewModel that has the data it needs to bind. The View has no concept of a business model, or at least, it doesn't work with one directly.
The ViewModel can reference a Model. It might get data right off of it, or even invoke the Model's methods to derive data. It might also have some logic of its own, logic that is view-specific as opposed to domain-specific. It is often a subset of the original Model, with the added responsibility of view-specific concerns like formatting dates and numbers. The ViewModel doesn't need to know about the View, and it could even be consumed by multiple Views.
The Model has no concept of ViewModels or Views. It is your pure business model/domain object. It might handle data calculations or derivations based on business logic. It should not care about presentations concerns like formatting.
For further reading, I suggest the section titled The Evolution of Model-View-ViewModel in this article, specifically, the last two paragraphs of that section.