A Chinese woman in her 40s, a visitor from Hubei province, is in a stable condition with the respiratory illness, Victoria's Department of Health and Human Services confirmed.

She was confirmed positive on Thursday following a series of tests and has been isolated in the Royal Melbourne Hospital.

Two close contacts of the woman have been identified and are being monitored for symptoms.

It is still not clear which public places the woman had visited before feeling unwell.

This new case comes one day after the health department announced a man confirmed having the coronavirus dined with his family at a suburban Melbourne restaurant before being isolated.

The man in his 60s had become infected while travelling in China's Hubei province.

The department said the man started to feel unwell on January 23 and had remained isolated since then, but he had dinner with his family on Australia Day at The House Of Delight restaurant in Glen Waverley.

The man's three adult and two child relatives have been isolated with him. One has already tested negative for the virus, while the children are being kept from school.

Victoria's Chief Health Officer Dr Brett Sutton urged anyone who was at the restaurant between 5.30pm and 7pm on Australia Day to be aware of symptoms.

Although Dr Sutton said the restaurant was allowed to open, a sign outside the establishment says it will remain closed until February 9, "in order to minimise the risk of the Novel Coronavirus".

A Chinese New Year and Lantern Festival which was due to be held in Glen Waverley's Kingsway in February has also been cancelled, a Chinese events organising committee told Monash Council.

Australian Associated Press