The Shepparton cluster has grown to 112 active cases, and more than 95 exposure sites.
A shrinking of the border bubble could be announced as early as today, Mr Andrews has foreshadowed.
Asked if Victoria would keeps its border closed while NSW has more than 1000 cases a day Mr Andrews said he had no advice to open the border.
"In fact I think you'll see us make some announcements in coming days about shrinking that border bubble, in fact not in coming days, quite soon, the CHO release might even go to some of these border announcements later on today," he said.
Mr Andrews agreed with a journalist when they said realistically the border would not open to NSW "well into next year".
"Yep, and no one is happy about that," he said.
"We'll have many more options when we get to 80 per cent and once they're at 80 per cent."
Mr Andrews said if Victoria had very few cases and there was a raging epidemic in NSW the advice he would likely be given was to keep the border closed.
"The key to all these borders being reopened and even international borders being open is that we get to 80 per cent, we get our freedom back, we find a COVID normal and as is sometimes used, not as a news flash but as a statement of fact, we will be living with COVID then," he said.
Mr Andrews said he hopes people looks at Victoria's record on border closures.
"We didn't shut our border all last year," he said.
"We have not been the state that has been locking people out, others have done that, we've always left it as a last resort.
"As it stand now the position in NSW, in regional NSW, is very different to the position in regional Victoria. They've got quite a few Sheppartons going on at the moment.
"And the reason I will be able to stand up here next week and hopefully announce an opening up and end to lockdown in regional Victoria is because we are not letting people from NSW, or at least very few of them, come in.
"That will change, that will absolutely change when we get to 80 per cent and they are at 80 per cent. That's a good thing, that's not something to quarrel about. I don't have a crystal ball..."
Reopening Victoria's border with NSW will depend on the situation in the larger state not just vaccination targets, Mr Andrews said.
He said he was working as hard as he could to get stranded Victorians home so they can return home before 80 per cent vaccination.
Mr Andrews said more announcements would be made soon.
Five of the state's 120 cases are linked to the Shepparton outbreak.
Regional Victoria - excluding Shepparton - will likely see an end of lockdown next week, but the nature and date of that change has not been announced.
Mr Andrews said significant restrictions will still occur.
He said announcements would be made in due course.
Schools will not return to face-to-face learning in term three.
Mr Andrews said a decision is still to be made about term four and an announcement will likely be made next week.
He did not detail whether the announcement applied to all Victoria or just Melbourne.
Lockdown will remain in place in Melbourne until 70 per cent of residents are vaccinated - but minor changes to restrictions will occur.
It's estimated the state will reach 70 per cent vaccination on September 23.
Victorian Premier Daniel Andrews said lockdown would be extended in Victoria, but later clarified it would just impact Melbourne.
He said playgrounds will reopen from September 2.
In home care will be expanded to school aged children if both parents are authorised workers.
Once the state reaches the 70 per cent target, the five kilometre limit will expand to 10 kilometres. The time allowed for exercise will be expanded to three hours a day and outdoor personal training will be allowed.
He said advice came last last night from the public health team which they had to follow.
"We will not see these cases go down they're going to go up the question is by how many and how fast," he said.
Mr Andrews said the state must suppress cases until vaccination rates lift.
He said the state was in for a challenging time in coming weeks.
Mr Andrews said the latest lockdown has prevented 6000 cases.
"Over the past 72 hours, the advice from our public health team has been that we still had a promising chance to bring this under control," he said in a statement.
"We are charting out way out of this outbreak with easing at thresholds of lower cases.
"Last night, with cases already in triple figures, too many mystery cases and too many people infectious in out in the community, that advice has changed."
Despite the easing of restrictions, Melbourne's curfew will remain in place.
It comes despite the state recording the highest number of daily cases since August 2020.
Mr Andrews said there had been a dramatic shift in the nature and number of cases.
He said of the cases who had been fully interviewed only 20 were in isolation while infectious.
The origin of 56 cases remains under investigation.
There are 900 active cases in the state, five acquired overseas. 122 of those cases remain under investigation.
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Ms Berejiklian remains hopeful internal borders will reopen when the country's vaccination hits 70 per cent.
"As confronting as this is, a lot of states who haven't had major outbreaks during the pandemic are going to have to appreciate once you get to 80 per cent double dose vaccination and you open your borders Delta will creep in," she said.
"But if your population is protected and you've got COVID-Safe plans in place, good QR code systems, good systems to monitor where the disease is circulating and warn residents, take immediate action to take care of outbreaks that may occur, that's the way we have to live with COVID
"As confronting as that is that is the reality. Every premier is signed up to the plan and I hope that we all stick to the plan."
Ms Berejiklian said Victoria was 'turning the corner' in how they deal with outbreaks and accepting what the Delta strain is like.
"I hope we're in a position at least where the two largest states are on the same page in terms of how we move our population forward," she said.
Ms Berejiklian said "if not at 80 per cent, then when?"
- with AAP
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