Of the new cases, 149 have been linked to known outbreaks and the rest remain under investigation.
One of the deaths was announced yesterday and it is a man in his 40s.
The death toll from COVID-19 in the state due to this latest outbreak has now risen to eight.
54,648 test results were received and 41,856 doses of vaccines were administered yesterday.
The state currently has 67.7 percent first-dose vaccinations.
Health experts call for greater freedoms outdoors, such as small outdoor gatherings.
Prime Minister Daniel Andrews will reveal the roadmap out of lockdown, which will include a plan to finally get students back to class on Sunday.
“We didn’t make it to Christmas lunch and we hit a switch and it’s all over,” Andews said yesterday.
“There will be consequences to this for some time to come. I know it’s incredibly frustrating.”
Victorian business owners are waiting with anticipation to see what the future holds after spending hundreds of days closed during the state’s grueling shutdowns.
Bruce Keebaugh, owner of catering and events company The Big Group, said the companies were looking for a “plan of hope.”
“We hope there is a clear plan for our people to get back to work and revive this city,” he told Today.
“I think we have had no income for 540 days in the events, arts and culture business.
“It’s pretty sad here in Melbourne, Victoria.”
Victoria recorded two deaths from COVID-19 yesterday, including a man in his 20s from Hume whose infection was not detected until after his death.
The man is believed to have other underlying health conditions, including heart problems.
Response from COVID Undersecretary Kate Matson said that while the cause of her death was not 100% confirmed, there were strong indications that it was caused by COVID-19.
A woman in her 80s from Brimbank also died at the hospital.
A new government plan will also force all healthcare workers in Victoria to be fully vaccinated under a ‘no jab, no work’ policy.
Anyone who works in a public or private hospital, clinic or GP will be instructed to get vaccinated, and the mandate also includes paramedics.
The plan will be brought to the National Cabinet this Friday, which could see similar measures to be implemented in all states and territories in the future.