Now, conservation efforts are bringing the species back from the brink.

Once common across the grassy plains of south-west Victoria, the endangered marsupial was thought to be extinct until 1991 when a small population was found.

Efforts from a recovery team setup three years prior, along with several government agencies, non-government organisations and community groups have ensured the species' survival.

Today Hamilton Sanctuary is home to nearly 100 bandicoots and a plan to release more into the area is one step closer with the installation of a new predator-proof fence.

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It's part of a $500,000 state government investment to protect the endangered bandicoots and will include a 'floppy top' to prevent foxes and cats from climbing over.

Department of Environment, Land, Water and Planning natural environment program officer Jonathan Lee said he was proud of the results.

"It's fantastic to be part of the Eastern Barred Bandicoot recovery team and to see the bandicoots living happily at Hamilton," he said.

DELWP natural environment program officer Richard Hill said conservation efforts included conducting regular health checks.

"The department monitors the Eastern Barred Bandicoots at the site by conducting health checks twice a year through trapping programs," he said.

"Our teams also microchip bandicoots to follow their journey and sets up cameras within the fenced site to monitor the population and undertake spotlighting sessions to look out for the health of the entire reserve."

Last year, the species became the first in Australia to have its conservation status reclassified from extinct to endangered.

There is now an estimated 1500 Eastern Barred Bandicoots in Victoria.

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