New daily Covid-19 cases in Australia's Victoria and New South Wales states, the epicentres of the country's worst virus outbreak, have fallen as authorities look to start easing tough restrictions amid a rise in vaccination rates, Reuters reports.

A total of 1,420 new locally acquired cases were reported in Victoria, most of them in the state capital Melbourne, down from a record 1,763 on Tuesday. Eleven new deaths were registered, the state's highest daily number in the current outbreak.

Melbourne has been in lockdown since August 5 as Australia grapples with a third wave of infections fuelled by the fast-moving Delta variant that has also put millions in Sydney, its largest city, and the capital Canberra, under strict stay-home rules. Most other states have zero or low cases.