A THIRD person has died and there are warnings that more deaths are possible following Australia's largest listeria outbreak, which has been linked to a Victorian cheese company.

Victoria's acting chief health officer, Dr Michael Ackland, has confirmed that tests revealed that the death of a 68-year-old New South Wales man in late January was linked to the listeria contamination of Jindi cheese products.

The outbreak, which has been traced to the company's factory in Jindivick, Gippsland, had earlier been linked to the deaths of an 84-year-old Victorian man and a 44-year-old Tasmanian man.

Twenty-six cases have so far been identified, including that of a NSW woman who had a miscarriage.

The Victorian Health Department says it acted promptly and appropriately to contain the outbreak, which first came to authorities' attention in mid-December and led to the recall of more than 100 products. But it has warned there could be more cases and further fatalities.