South Australia is considering opening a travel bubble with the ACT, with a decision expected as soon as Friday.
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The state is understood to be looking at opening its borders to the ACT and NSW, although the final decision will rest on medical advice and national cabinet's definition of a coronavirus spot.
It's been almost two months since the ACT recorded a new COVID-19 case, however territory residents must quarantine for two weeks to enter South Australia and submit to two COVID-19 tests.
ACT Liberal Senator Zed Seselja said after speaking with South Australian Premier Steven Marshall on Wednesday, he was optimistic restrictions on Canberrans travelling into the state would be eased soon.
"My feeling is having spoken to them I am very hopeful," Senator Seselja said.
It comes after an earlier attempt at a travel bubble between Canberra, Hobart and Adelaide was thwarted due to rising coronavirus cases. Chief Minister Andrew Barr said at the time "safe city pairs" were the first step in reopening Australia's domestic tourism market.
Senator Seselja said even if it was too soon to ease entry restrictions for NSW residents, Mr Marshall was open to allowing easier passage for ACT residents.
This is different to the approach taken by the Queensland government, which has classified the ACT as a coronavirus hotspot due to its porous border with NSW.
Senator Seselja said Mr Marshall was "considering carefully" whether to use ACT drivers licences to ensure only Canberra residents were allowed to enter the state under the bubble arrangements.
It is an idea being pushed by Canberra Airport chief Stephen Byron, who has previously said it could deter people from trying to use the ACT as a back door to enter other states.
Mr Marshall told media on Wednesday the state government was "looking at different models to manage our borders".
"One which has been strongly advocated for is the hotspot arrangement. We'll get more information from the AHPPC and let's wait to see what happens on Friday," Mr Marshall said.
"We've said from day one we don't want to keep our borders closed for a day longer than we need to.
"We've already opened our borders to Queensland, the Northern Territory, Western Australia and Tasmania, we see the ACT continuing to do extraordinarily well and even NSW.
"I think we're still quite a way down the track with regards to Victoria. They still had another 90 cases reported today. Earlier this week we saw 41 deaths reported overnight so I still think Victoria has a long way to go."
Federal MPs have been pressuring states to relax border restrictions, which are seen as a handbrake on the national economy.
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Treasurer Josh Frydenberg said on Wednesday more flexibility on border movements would "help generate improvements in the economic recovery".
Senator Seselja said opening travel bubbles was a key step of learning to live with the virus.
"Those states that suppress the virus should be able to have more freedoms. That is the bargain Australians have been asked to accept," Senator Seselja said.
