Giants officials say the ACT government was prepared to slash venue hire fees to bring this weekend's Sydney derby to Manuka Oval.

But plans to bring the clash to Canberra were scuppered by the Victorian government's decision to list the ACT as a red zone despite the city going more than a year without recording a locally-acquired COVID-19 case.

Instead the Sydney derby will be played in Ballarat, with the Giants and Swans facing extended stays in Victoria with no end to Sydney's lockdown in sight.

ACT Chief Minister Andrew Barr labelled the Victorian health officer's decision to shut off Canberra "collateral damage" after NSW recorded 112 new COVID-19 cases on Monday.

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Victorian borders have been shut to both NSW and the ACT.

The two Sydney clubs might have to remain based in Melbourne for the remainder of the season, putting GWS' round 20 clash with Port Adelaide at Manuka Oval in serious jeopardy.

"It's unfortunate [the Sydney derby] can't go ahead in front of our loyal Sydney members however the health and wellbeing of the community must come first during this difficult time," Giants chief Dave Matthews said.

"With Sydney out of the equation, we had been working extremely hard to bring this game to Canberra, however, the border restrictions now in place for the ACT make this impossible.

"The club will assess member entitlements and compensation options at the completion of the 2021 season once we have a full picture of the impact this disrupted season has had on our members.

"In the meantime, the club encourages everyone across New South Wales and the ACT to continue to adhere to the advice of the relevant health authorities.

"We all want to be able to move around our communities freely and see family and friends as soon as possible, so if you can, please get vaccinated."

Both the Giants and Swans have been based in Victoria since June 22 and are pushing for family members to be able to join players and staff in Melbourne.

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