The traditional April 25 march had been cancelled because of COVID-19 concerns, however it will now go ahead with COVID-safe precautions.

The reversed decision follows a "productive" Friday meeting between Returned and Services League Victoria and Department of Health and Human Services officials, an RSL spokesperson said.

The meeting came on the same day as a significant easing of social gathering restrictions, announced by Premier Daniel Andrews.

Other than the parade, decisions are yet to be made about other commemorative events.

"RSL Victoria also discussed the more than 400 RSL-led Anzac Day services and events currently planned at war memorials and cenotaphs across the state," the spokesperson said.

The RSL said it was confident a resolution would be reached soon.

The 2021 public holiday will be a welcome change from Anzac Day 2020, which was a quiet affair as Victorians stayed home and stood in their driveways to pay their respects to service men and women.

The decision comes days after Queensland Premier Annastacia Palaszczuk announced dawn services, marches and public commemorations would return in that state.

Meanwhile, traditional marches in NSW, including through Sydney's CBD, will be limited to 500 participants.

Tasmania's main Anzac parade in Hobart has been cancelled because of social distancing requirements.

Australian Associated Press