Health Minister Martin Foley confirmed non-urgent elective surgery would ramp up to 50 per cent of normal levels from Monday in private hospitals and day procedure centres.
Category two and three elective surgery was suspended in early January before a "code brown" declaration was instituted in hospitals as Victoria's ailing health system prepared for an influx of COVID-19 patients amid the Omicron wave.
"It's clear that Omicron has put a huge pressure on our healthcare system," Mr Foley told reporters on Friday.
"Whilst we regret having to delay all non-urgent category one surgery, we are now in a position ... to cautiously and carefully get that system back on next week."
It is a similar staged resumption plan to that announced in NSW on Monday, although does not extend to public hospitals in regional and rural areas.
Mr Foley flagged non-urgent surgery in regional public health settings could return to 50 per cent of normal levels in coming weeks.
A timeline for the full-scale resumption of elective surgery will be subject to health advice and take seven-day COVID-19 hospital patient figures into account.
While COVID-19 hospitalisations were predicted to peak as high as 2500, numbers have fallen to 707 - the state's lowest figure since January 7.
There are 79 people in intensive care, three fewer than the previous day, with 29 of those on a ventilator.
The Victorian government also announced a $1.4 billion funding package to help the healthcare system cope with ongoing costs stemming from COVID-19.
Victoria recorded another 36 COVID-related deaths and 11,240 new cases on Friday, as more than 1000 students and staff remain home after testing positive.
About 1000 students and 79 staff returned a positive rapid test from 4pm on Tuesday to 4pm on Wednesday, up from 682 students and 63 staff in the previous 24-hour window.
But the numbers aren't comparable because students are not required to use rapid antigen tests on specific days under the twice-weekly recommendation.
No schools have closed due to COVID-19 outbreaks or staff shortages, in line with the state government's pledge that a return to remote learning would be a last resort.
Air purifiers were a key plank of the state's back-to-school plan but two have been stolen from Mentone Park Primary School in Melbourne's southeast in an overnight burglary earlier this week.
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