The confirmation comes just days after a sixth form in Victoria recently tested positive for the H7N3 strain, Xinhua news agency reported.

NSW Agriculture Minister Tara Moriarty said in a statement that the state government has created its emergency biosecurity incident plan to address high pathogenicity avian influenza (HPAI).

According to the statement, the HPAI detected is the H7N8 variant, which is not identical to the current Victorian outbreak. At the present stage it is believed to be a potentially isolated outbreak from wild birds.

Because highly pathogenic diseases can spread rapidly and cause high mortality rates in poultry birds, farms are now subject to immediate lockdown, and the NSW Government has also launched its emergency animal disease response.

"NSW consumers should not be concerned about eggs and poultry products from supermarkets," Moriarty said.

"The findings pose no threat to consumer health and the products are safe to consume if they are handled and cooked as per standard food handling practices," the minister said.

Australia's major supermarket chain Coles has banned the purchase of eggs since last week due to the outbreak of bird flu.

Signs were seen at one of Coles stores in Sydney on Wednesday saying that due to a shortage of eggs in supply, the supermarket has introduced a temporary limit of two items per customer or transaction.