Inside Out Unsweetened Almond Milk with a use-by date of March 1 was being sold at Woolworths in NSW.
NSW Health said initial investigations confirmed the presence of botulinum toxin in a sample of the milk.
The contamination was identified after a person experienced severe symptoms of botulism after drinking the product and was admitted to hospital, where they continue to receive treatment.
The NSW Food Authority is investigating the manufacturing of the product to determine the possible cause of the contamination.
NSW Health advises the recalled product is not safe to consume and is asking people to check their fridge and cupboards and dispose of the milk or return it to the shop for a refund.
NSW Health's Keira Glasgow says while food-borne botulism is very rare in Australia, the toxin can be extremely dangerous, even life-threatening.
Early symptoms of food-borne botulism include weakness, fatigue and vertigo.
"It is usually followed by blurred vision, dry mouth and difficulty swallowing. Nausea and vomiting may also occur," Ms Glasgow said.
"These symptoms can progress to paralysis of the arm muscles and continue down the body to the trunk and legs, and paralysis of breathing muscles can be fatal."
Anyone with symptoms is advised to seek immediate medical attention.
"Most cases recover if diagnosed and treated early," Ms Glasgow said.
Symptoms may begin from a few hours to several days after consuming the contaminated product.
Details of the affected product are listed on the FSANZ website.