States and territory leaders have agreed to move towards the removal of quarantine arrangements for fully vaccinated close contacts as the nation transitions towards living with COVID-19.

Under the plan, jurisdictions could decide fully vaccinated close contacts would not need to quarantine.

The proposal was tabled at National Cabinet on Friday in what was the first meeting in over a month.

Leaders were presented with updated data from the Doherty Institute which found cases arising from international arrivals would be more manageable once the 80 per cent vaccination target was reached.

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