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Play resumed at Melbourne Park on Friday after 507 players returned negative COVID-19 test results, paving the way for the Australian Open to proceed next week.

Relieved tennis officials are proceeding with 'Plan A' for the Australian Open, starting on Monday, after all 507 players returned negative COVID-19 tests.

A number of the world's biggest stars were among players forced into self-isolation this week when a 26-year-old Melbourne man returned a positive test on Wednesday.

The man had been working at the Grand Hyatt hotel as part of the grand slam's quarantine program.

Warm-up events were suspended at Melbourne Park on Thursday as nervous players and officials underwent testing and waited for results.

They were given the all-clear by Friday morning, paving the way for play to resume, while the men's and women's Australian Open draws were conducted after being postponed on Thursday.

"We're pleased that everyone tested negative," said Tennis Australia boss Craig Tiley, the tournament director.

"The past few days haven't been easy for anyone and I'm incredibly proud of the players and our staff.

"Many of us have had sleepless nights, but that's just how it goes."

Victoria recorded no new locally-acquired COVID-19 cases on Friday.

With stringent health measures already in place, Tiley is adamant the Open will be able to continue regardless of whether more community cases are discovered.

"I have full confidence in (the state government's) decisions. They've got it right so far, and will continue to get it right in our view," Tiley said.

"We work closely with the government and whatever decisions they make, we'll adjust to.

"Regardless of the situation in the community, the event will go ahead because of the number of different scenarios with Plan A, Plan B and Plan C."

A large crowd - a rarity in world sport this year - is expected to flock to Melbourne Park on Monday, with up to 30,000 spectators permitted.

Fans will be required to wear masks in indoor areas, but not while seated in grandstands.

"We can be a showcase for the rest of the world in tennis events and I'm pretty confident that our crowd will be well-behaved and do the right thing," Tiley said.

Tiley also moved to ease fears over 20-time grand slam champion Rafael Nadal's lower back injury, revealing he had seen the Spaniard in action on the practice court on Friday.

He also forecast plenty of first-round upsets in both the men's and women's draws.

He said the schedule of play would be designed to allow players as much rest as possible between the warm-up events, which finish on Sunday, and Monday's Open first round.