All regional Victoria bar Shepparton free on Friday morning

All of regional Victoria except Greater Shepparton will come out of lockdown at midnight on Thursday.

Greater Shepparton residents will remain under stay at home orders until at least next week.

The state recorded 221 coronavirus cases on Wednesday, with new cases reported in regional areas including the Latrobe Valley, Mitchell Shire and Bellarine Peninsula.

Premier Daniel Andrews says businesses and schools for some students will reopen in regional Victoria from 11:59pm on Thursday, as stay-at-home rules and travel limits are lifted for most areas outside Melbourne.

The move is due to fewer cases in regional parts of the state and localised outbreaks being brought under control. Mr Andrews said:

"That is a testament to the great work of our contact tracers, our public health teams but also the great work of regional Victorians over the recent weeks."

However, a number of restrictions will remain for regional Victorians, including a ban on visiting homes and outdoor gatherings limited to 10 people.

Regional schools will reopen for on-site learning for students in prep to grade two and year 12 students, but remote learning remains for all others.

Early learning centres, kindergarten, child care and family day care will also reopen for regional Victorian children.

Restaurants, cafes, retail, hairdressing and entertainment businesses will reopen for seated service, but patron caps will apply.

Funerals are permitted for up to 20 people, with weddings allowed for up to 10 plus those conducting the service.

Face masks will be required indoors and outdoors, apart from private residences, unless an exception applies.

Mr Andrews says a "significant boost" to police enforcement will help control movement from metropolitan Melbourne into the regions.

"If you are travelling into regional Victoria, you can expect to be pulled over. It won't necessary be every single car, but there will be numberplate recognition technology used."

"If you don't have a good, lawful reason to go to regional Victoria, then please do not go to regional Victoria."