UPDATE: Victorian Premier Daniel Andrews has confirmed shutting the Victoria-NSW border for an indefinite period as the coronavirus crisis worsens in his state.
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The closure will be effective from midnight Tuesday with a permit system to be put in place for communities such as Albury-Wodonga.
Further details on the permit system will be provided by NSW Premier Gladys Berejiklian on Monday.
"There will be a facility for people who live in those border communities to travel to and from for the purposes of work, for the purposes of the essential health services they might need," Mr Andrews said.
Mr Andrews said the border closure would "be enforced on the NSW side" with the decision made in consultation with Ms Berejiklian and Prime Minister Scott Morrison.
"This is one of those precautionary measures which will help us in broader terms contain the spread of the virus," he said.
"It is the smart call, the right call at this time given the very significant challenges we are facing in containing this virus."
There is no time limit on how long the closure will be in force.
There have been 127 coronavirus cases recorded overnight in Melbourne with the death of a man in his 90s also confirmed by Mr Andrews.
The Albury-Wodonga health region has not recorded a COVID-19 case in more than three months.
The closure comes at the start of the NSW school holidays and the mid-way point of the Victorian school holidays.
EARLIER: NSW opposition leader Jodi McKay wants the border between her state and Victoria shut immediately.
A surge in cases from hotel quarantine in NSW and the start of the school holidays in the state prompted Ms McKay's call for a hard border closure.
Such a move would create mayhem for Albury-Wodonga.
"NSW and Victoria must work together and as all options are considered, prudent and reasonable arrangements will be needed for our border communities," the state Labor leader said.
"Until now I have supported the Premier's decision not to change NSW-Victoria border arrangements.
"But school holidays are now underway and the NSW Government's actions so far to prevent infectious arrivals in our state have been inadequate.
"The NSW Premier has steadfastly refused to re-examine border arrangements as the Victorian situation worsens.
"However a closure needs to be considered and on the table while the spread is not contained."
There were 14 coronavirus cases reported in NSW on Sunday and all were overseas travellers in quarantine in Sydney.
Albury councillor and Labor Party member Darren Cameron disagreed.
"I don't agree with it. It is impractical," he said.
"If it were to be done arrangements would have to be put in place for communities along the river such as Albury-Wodonga where a large portion of residents live in one state, but work on the other.
"I'm also worried about fire affected communities, many of whom are relying on visitors in these school holidays to get their economies up and going again."
"Whilst it would not be ideal, we will be guided by the Chief Medical Officer's advice and the Premier's department," he said.
"We are all in this together and need to do what is necessary to avoid further outbreaks in NSW and more importantly our border communities."