Victorian Premier Daniel Andrews has confirmed that the border with NSW will close at 11.59pm on Tuesday, July 7.
The Premier said the decision followed an early morning discussion between him, NSW Premier Gladys Berejiklian and the Prime Minister Scott Morrison. He said the National Cabinet had been informed.
"We all agreed it was the best thing to do," Premier Andrews said.
"It will be closed on the NSW side so as not to be a drain on (Victorian) resources and will help contain the spread," the Premier added.
It would allow staff currently involved in testing at train stations and airports to be deployed elsewhere, Premier Andrews said.
"There will be a permit system in place which will be announced by NSW Premier Gladys Berejiklian later," Premier Andrews said.
Victoria has seen its highest daily total ever with 127 confirmed cases overnight.
Victorian Chief Medical Officer Professor Brett Sutton said they were monitoring the "heat maps" of where cases are occurring everyday.
The Premier apologised to travellers for any inconvenience but said that in the face of "unacceptably high numbers" of COVID-19 cases it was the right thing to do.
"It is not a feature which will go on any longer than it has to," he said.
NSW Premier Gladys Berejiklian is expected to provide more detail in the next hour, on how the border closure will work.