Anthrax has been found on a property near Swan Hill.
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The affected property had now been quarantined and appropriate biosecurity protections are in place, Victoria's chief veterinary cfficer Charles Milne said.
“We are urging local farmers to continue to be vigilant and report any symptoms in livestock that may be related to anthrax,” Dr Milne said.
Agriculture Victoria veterinarians and animal health staff responded to the positive identification over the weekend.
Anthrax is caused by a naturally occurring bacteria, Bacillus anthracis, which is known to exist in soil in parts of Northern Victoria.
Dr Milne said it was not unusual for incidents of anthrax to be detected in cattle and sheep in the region, with several farms in the Swan Hill area affected in March 2017 and a property in March this year.
"Incidents tend to occur during the warmer months when it's drier and livestock forage deeper into the soil when eating grass," Dr Milne said.
“We are well prepared to handle these incidents and we are currently contacting local farmers and veterinarians.”
Dr Milne said all sheep on the affected property had now been vaccinated and appropriate disposals were taking place today (Monday).
The current evidence suggests that one property has been affected.
Agriculture Victoria will continue to work with nearby farmers, veterinarians and the local community to monitor the situation.
Farmers are urged to report any cases of unexplained livestock death to the 24-hour Emergency Animal Disease Watch Hotline on 1800 675 888, their local vet or to Agriculture Victoria animal health staff.
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