A snap five-day lockdown had been ordered for Victoria state Friday after a small outbreak of the more infectious United Kingdom coronavirus variant prompted fears Australia's successful battle to contain the pandemic could be undone.
According to the pre-lockdown agreement with the Victorian government, crowds would have been limited to 25,000 for each day fo the final four days but Andrews said that figure might be reduced further.
"They will be on a case-by-case basis and it is not a simple process we go through quite an exhaustive process to make sure that those events are viable and can happen but are safe", he said. "We'll finish up with people being able to move freely because this short and sharp circuit-breaker has worked".
Community sport will also resume this weekend and all retail shops, pubs and cafes will be open again on Thursday morning.
The lockdown has been enforced across Victoria, a population of 6.5 million people, to prevent the virus spreading from the state capital. "As I said yesterday, I'm not in a position to definitively commit to that, because these next 24 hours will be crucial".
Schools will reopen tomorrow after many students have undergone remote learning since Monday. Many booed as they left.
Premier Andrews said all of these restrictions will be reviewed on February 26 when the 14-day epidemiological period has ended.
Melbourne emerged from a 111-day lockdown in October following a fresh wave of infections that peaked at 725 cases a day.
Australian Open had earlier barred spectators until the end of the lockdown.