Olivia Newton-John's niece says her family will accept a state funeral for the Australian entertainment legend if a formal offer is made.
The British-born, Melbourne-raised performer died in her sleep at her California home on Monday aged 73.
Victorian Deputy Premier Jacinta Allan says further discussions with the family are taking place.
"The family is grieving the loss of an incredible woman and we just need to give them some time and space to work through those matters," she told reporters on Wednesday.
Actress Tottie Goldsmith, a niece of Newton-John, appeared on A Current Affair on Tuesday night to remember the Grease star.
Her family would accept the offer of a state funeral, she said.
"On behalf of not just our family but I think Australia needs it - she's so loved. I think our country needs it, so we're going to accept it," Goldsmith said.
Meanwhile, Newton-John's only daughter, Chloe Lattanzi, shared a tribute to her on Instagram.
"You are my lighthouse mama. My safe place. My heart space. It has been my honour and continues to be my honour to be your baby and best friend," she wrote.
"You are an angel on earth and everyone touched by you has been blessed. I love you forever my life giver, my teacher, my mama."
A number of famous Melbourne landmarks - including Flinders Street Station, the Arts Centre, the MCG and other sporting venues - were lit in pink on Tuesday night to mark Newton-John's contribution to cancer awareness and research.
The performer, who was best known for her role alongside John Travolta in the smash movie musical Grease, endured a recurring battle with breast cancer.
Premier Daniel Andrews said her generosity saved lives and her advocacy provided hope for others.
"She took her cancer journey and used that to save lives and change lives, and that's just a deeply impressive thing," he said.
Austin Health, home of Melbourne's Olivia Newton-John Cancer Research Centre, said it was a particularly sad day at the facility and they were planning a memorial service.
Adelaide also lit up its entertainment centre in pink on Tuesday.
Travolta was among the first to pay tribute to his former co-star, while Australian music guru Molly Meldrum said her passion for life was unwavering.
"Tonight, the stars will shine a little brighter and I am heartbroken," he said.
