The franchise announced late yesterday its match against the Melbourne-based Rebels, which had been scheduled for Queenstown on Sunday, had been shifted to the Leichhardt Oval in Sydney.
The game will kick off at 5pm (NZ time).
The Highlanders were left with little choice but to move the game across the Tasman after the New Zealand Government extended the travel pause between Victoria and New Zealand.
The community outbreak of Covid-19 in Melbourne grew yesterday and the state has gone into a seven-day lockdown.
The Rebels players moved to Sydney on Wednesday but, as the outbreak in Melbourne worsened, the Highlanders were left with no option but to move the game to Sydney.
New Zealand Rugby general manager of professional rugby Chris Lendrum said the health and safety of players and fans remained the number one priority.
"We are pleased to be able to keep the competition going, but are working closely with Sanzaar, Rugby Australia and the Rebels to ensure all measures are in place to keep the Highlanders players, coaches and management safe."
All Rebels players and staff would be tested for Covid-19 before Sunday’s match.
The Rebels are also continuing to check the locations of interest named by the Victorian state government and at this stage no team members have been to any of the locations listed.
The Highlanders will fly to Auckland tonight and head to Sydney tomorrow.
Highlanders chief executive Roger Clark felt for Queenstown supporters.
"It is disappointing, bitterly disappointing really, and especially so for all the people in Queenstown who have supported us, and the Queenstown community who really got in behind the event,"Mr Clark said.
"We were looking at a crowd of 9000 to 10,000 and it was going to be an awesome game."
Mr Clark said the cost to the franchise was in the hundreds of thousands of dollars.
The option to not play the game and secure two points for a draw was never considered.
"We need four or five points, the way the competition is shaping up. We want to be in the final and so need to play the game."
Queenstown-Lakes Mayor Jim Boult did not hide his disappointment yesterday.
"It is gutting, completely gutting.
"We were expecting a crowd of 10,000 to the game and the economic benefit to the town in what is a quiet time of year would have been substantial," Mr Boult said.
Covid-19 Response Minister Chris Hipkins said the current situation was the biggest challenge to the transtasman bubble so far.
He said anybody who had been in a location of interest in Melbourne could not travel to New Zealand for at least 14 days since visiting the location.
Further restrictions, such as pre-departure testing, were being considered.
Director-general of health Dr Ashley Bloomfield has implemented new rules under the Health Act regarding anyone who was in Melbourne from May 20-25.
"Anyone who has travelled to New Zealand is required to isolate, be tested and keep isolating until they receive a test result.
"We are applying a precautionary approach."
Mr Hipkins said authorities would be attempting to contact about 5000 people who had travelled to New Zealand from Melbourne since May 20.
"There is a lot of them, so they shouldn’t all expect to be contacted immediately."
Contact tracing centres would be used to follow up with those people, likely starting last night.
- There was one new case of Covid-19 reported in New Zealand managed isolation yesterday.
— Additional reporting RNZ/The New Zealand Herald
