Victoria has recorded just two new cases of coronavirus and no new deaths.
The latest figure sees the 14-day average drop below eight while there are just 112 total active cases.
It comes as the state recorded a single new case Saturday, and just two in the 24-hour period to Friday, representing the lowest numbers since early June.
It is the fourth consecutive day the state has recorded no deaths related to Covid-19.
There are currently 15 active cases from unknown sources, according to the Department of Health and Human Services.
Later today, Victorian Premier Daniel Andrews will address the media when he is expected to announce the loosening of restrictions.
Mr Andrews has said the relaxation will centre around social gatherings, and it is expected residents will have greater freedom to meet with other households outside.
Melbourne residents are subject to restrictions including a two-hour daily outdoor exercise window within 5km of home, and no more than five people from two households can gather outside.
On Saturday, the premier hinted that interstate travel could soon be on the cards again for Victorians but said first the “ring of steel” between metropolitan Melbourne and regional Victoria would need to come down.
‘Right on the edge’ of victory
Federal health minister Greg Hunt has urged the Victorian government to ease restrictions in line with NSW.
"The epidemiological conditions for a COVID-safe reopening of hospitality, movement (and) family reunions among others, have now been firmly met," Mr Hunt posted on Twitter on Saturday.
"Victoria should now be able to move to the next step in line (with) NSW."
However Mr Andrews said Mr Hunt was not an epidemiologist and accused him of "playing games", before adding that he would not be rushed in reopening Victoria.
"We are not going to risk everything that Victorians have sacrificed. And that's why this strategy is not about racing to open up (and) running to COVID-normal - it's about safe and steady steps," the premier said.
"We are right on the edge now of defeating this second wave. It's not occurred in many countries, if any, across the world."
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