Australia's two largest states reported sharp increases in new COVID-19 cases on Wednesday, a blow to hopes that lockdown restrictions would be lifted with more than half the country's population under stay-at-home orders.

New South Wales state, home to the country's most populous city Sydney, logged 110 new cases, up from 78 the day before, nearly four weeks into a lockdown of the city and surrounding areas to contain an outbreak of the virulent delta variant.

Victoria state clocked 22 new cases, from nine the day before, its biggest increase since the outbreak began this month, as it nears its second week of statewide lockdown.