Australia's Victoria state expects to announce further easing of Covid-19 restrictions this week, acting Premier James Merlino has said, as the state reports one new locally acquired infection for a second straight day.

The latest infection is a close contact of a previously reported case and has already been quarantined, Victoria's health department has said, according to Reuters.

Australia's second-most-populous state has recorded 92 cases in its latest wave of Covid-19 infections, which triggered a two-week snap lockdown late last month. Victoria emerged from the lockdown on Friday as new cases declined, but some physical distancing rules remain.