Sydney will remain the venue for Australia's third Test against India next month despite the COVID-19 outbreak in the city's northern beach suburbs, Cricket Australia (CA) said on Tuesday.

Australia's most populous state of New South Wales (NSW) reported three new cases on Tuesday but CA decided against changing the venue.

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"We have met regularly over the past week to assess the unfolding public health situation in Sydney and gauge its impact on border restrictions around the country," CA's interim chief executive Nick Hockley said in a statement.

"To that end, we have made the decision to keep the New Year's Test at the SCG (Sydney Cricket Ground).

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"We are confident that both this match, and the fourth Test in Brisbane, will play out in a safe and successful manner."

The Melbourne Cricket Ground was kept on standby to host back-to-back matches against India, who won the traditional Boxing Day Test at the MCG by eight wickets on Tuesday.

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The four-Test series is level at 1-1 ahead of the third match in Sydney starting on January 7.

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