A second person has died from Legionnaires’ disease amid an outbreak of the rare illness in metropolitan Melbourne.

Victoria’s Chief Health Officer Dr Clare Looker said the man in his 60s became unwell on July 21 and was admitted to hospital on July 27, before he died on August 1.

“Our deepest condolences are with that man’s family,” Dr Looker said.

The Legionnaires bacterium.
The Legionnaires’ bacterium. (AP)

Health authorities are working to establish the source of the outbreak.

There are 77 confirmed cases and seven suspected cases in Melbourne as of 9.30am.

“This strongly suggests that the number of cases is decreasing and the situation is stablising,” Dr Looker said.

An investigation has been narrowed to several sites in the Derrimut and Laverton North areas in Melbourne’s west.

Victoria's Chief Health Officer Dr Clare Looker.
Victoria’s Chief Health Officer Dr Clare Looker. (9News)

Legionnaires’ disease is a rare but severe form of bacterial pneumonia.

It can cause a chest infection with symptoms of fever, chills, cough, headache and muscle aches and pains and atypical symptoms of nausea, vomiting, diarrhoea and confusion.

It is not commonly contracted or spread and is mostly found in people at a greater risk of infection.

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