An employee of AGL's Loy Yang A power station has tested positive for COVID-19.
The company confirmed the diagnosis on Sunday night, but said it would not have any impact on power generation.
"We can confirm that an AGL Loy Yang employee has tested positive for COVID-19," a spokesperson told The Express.
"The employee was last on site at Loy Yang on Wednesday 29 July."
AGL said the employee is now in isolation in line with government advice until they receive a medical clearance to return to work.
"We are supporting our workforce at the plant," the spokesperson said.
"AGL Loy Yang has strict safety measures around social distancing and hygiene protocols on site.
"All employees or contractors in close contact with this employee have been notified, asked to self-isolate and get tested and follow government advice.
"These actions are in line with the Victorian Department of Health and Human Services and World Health Organisation guidelines."
AGL confirmed that WorkSafe had been notified and a deep clean will be undertaken at the site.
"We will work closely with relevant authorities to assist with contact tracing.
"The safety and wellbeing of our people is our highest priority and we will continue to carefully monitor the situation.
"This will not impact (power) generation."
Latrobe City now has eight active cases of coronavirus, the highest number of any Local Government Area throughout the Gippsland region.