The elderly COVID-positive resident, who lived in Mercy Place's McAuley Wing, died on Friday morning.

Mercy Place Warrnambool general manager Toni Cuthbertson sent a letter to residents, families and staff on Friday confirming the death.

The Standard contacted Mercy Place, which declined to comment on the patient's gender or age, and if they had any underlying health conditions, but released the following statement on Friday afternoon.

"Our home is mourning the death of one of our much-loved residents this morning," it said.

"The McAuley Wing resident had tested positive to COVID-19 earlier this week. We have offered our condolences and support to the resident's loved ones at this difficult time. We have also offered additional support to residents who may be grieving the loss of their friend."

Ms Cuthbertson in a letter on Thursday said two people, one of which was the patient who died, had tested positive and were experiencing "mild symptoms".

"Two other residents are experiencing symptoms. Both have tested negative for COVID-19 using rapid antigen tests. All other residents are well," she said.

Families were informed of the two new active positive cases on Friday, taking the facility's current outbreak to a total of three positive cases.

The letter said McAuley Wing residents continue to isolate in their rooms. The wing has been closed to visitors since Tuesday, when families first received written communication about the latest outbreak.

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All McAuley Wing residents were given rapid antigen tests (RAT) on Friday and will undergo another RAT test on Sunday.

Visitors are permitted in all other areas of the home.

"Other residents can continue to move about and leave the home as usual. Those residents can continue to have visitors." Ms Cuthbertson said on Friday.

She said McAuley Wing staff were wearing full personal protective equipment including N95 masks, eye protection, gloves and gowns while other staff are wearing N95 masks and eye protection.

Ms Cuthbertson said there would be no written update until Monday "unless there is a significant change".

"The death of a resident is always difficult," she said.

"It is especially hard when residents, families and staff cannot come together as we otherwise might. It is normal to grieve when you lose a friend. Please let us know if you need to talk to someone or if you need additional support."

The latest outbreak follows a positive case at the facility in December when a staff member tested positive.

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