Acting Premier James Merlino on Wednesday confirmed Greater Melbourne will remain in lockdown for seven more days.
"If we let this thing run its course, it will explode," Mr Merlino said.
"We've got to run this to ground because if we don't, people will die."
But restrictions are set to ease in regional Victoria from 11.59pm on Thursday.
Melbourne residents will continue to have only five reasons to leave home: to shop for food and essential items, to provide or receive care, for exercise, work or study, or to get vaccinated.
The travel limit for exercise and shopping will extend from 5km to 10km in Melbourne, with compulsory wearing of masks both indoors and outdoors to remain in place.
Students will also return to face-to-face learning, while some outdoor jobs such as landscaping and painting can resume.
"At the end of another seven days, we do expect to be in a position to carefully ease restrictions in Melbourne, but there will continue to be differences between the settings in Melbourne compared to regional Victoria," Mr Merlino said.
He added that even if restrictions can be eased in Melbourne after another seven days, there will be no travel to regional areas for the June 12-14 Queen's Birthday long weekend.
While there are concerns about some regional test results, the state government plans to ease restrictions outside Greater Melbourne.
That decision was made because there had been no community transmission in regional Victoria this week.
Mr Merlino confirmed there would be no "ring of steel" around Melbourne this time, saying police would rely on mobile patrols and spot checks to enforce restrictions.
The five reasons to leave home will no longer apply to regional areas and there will be no limit on travel, although travel to Melbourne will be restricted to permitted reasons.
Outdoor gatherings can go ahead with up to 10 people and food and hospitality can resume seated service with a cap of 50 per venue.
Retail can open and religious gatherings will resume.
Regional businesses will have to check the identification of everyone they serve to ensure no-one from Melbourne is breaking lockdown rules.
But there are exposure sites at Anglesea, on the Great Ocean Rd, and Health Minister Martin Foley said there had been unexpected wastewater detections of the virus in Bendigo and on the Mornington Peninsula.
On Wednesday Chief Health Officer Brett Sutton also defended the government's strong rhetoric around the latest outbreak.
"I have described it as an absolute beast because we have to run it to the ground," he said.
The state government will also extend its support for business, with an extra $209 million in grants.
Mr Merlino added Victoria has again called on the federal government for more financial support.
"I do hope that the Commonwealth will swiftly confirm that they will step up and provide that support," he said.
"If they do not, I will be raising this directly at national cabinet on Friday."
The "circuit-breaker" lockdown was meant to end at 11.59pm on Thursday.
Victoria recorded six new locally-acquired cases of coronavirus on Wednesday, bringing the latest outbreak to 60 active infections.
Of the five new cases, one is a person who travelled to NSW while potentially infectious.
There are more than 5000 close contacts self-isolating as part of the outbreak and more than 350 exposure sites across the state, including country petrol stations in Euroa, Glenrowan and Wallan, as well as the sites in Anglesea.
In the 24 hours to midnight, 51,033 people were tested for COVID-19 and 20,585 were vaccinated.
Meanwhile, aged care and disability workers in Victoria will be able to jump the queue at 10 vaccination centres across the state from Wednesday as part of a five-day jab blitz.
