Premier Daniel Andrews may need to undergo surgery, with scans confirming he fractured his spine in a fall.
AAP understands doctors will decide on Wednesday whether the 48-year-old will need surgery, after scans revealed he fractured the T7 vertebrae in the middle of his spine.
He also broke several ribs, however fears he may have punctured a lung have not been realised.
The surgery would require inserting screws or pins into his spine, with recovery expected to take weeks.
Mr Andrews was taken to hospital early on Tuesday after slipping on wet stairs at a Mornington Peninsula holiday rental while getting ready for work.
He was initially treated at Peninsula Private Hospital but transferred to Alfred Trauma Centre in Melbourne on Tuesday evening after specialists assessed an MRI scan.
"This is a precautionary measure to ensure he has the most appropriate care available given the nature of his injuries," a state government spokeswoman said in a statement.
"The premier and his family thank the dedicated staff at Ambulance Victoria, Peninsula and the Alfred for their professionalism and care."
Mr Andrews plans to remain in intensive care for a few days on medical advice before providing an update on his health later in the week.
The seriousness of his injuries has cast doubt over his return to parliament when it sits next week.
In his absence, Deputy Premier James Merlino will serve as acting premier.
Environment Minister Lily D'Ambrosio told reporters on Wednesday that the premier was in "good spirits".
"(His wife) Cath and the kids are feeling well supported and are very thankful, the premier is very thankful for all the medical attention he has been in receipt of," she said.
"He is in the very best of hands and I certainly wish him a speedy and full recovery so we can have him back on board as soon as possible."
Opposition leader Michael O'Brien said he had texted Mr Andrews and wished him well for his recovery.
"You put politics aside for a time like this. You don't like to see anybody going through that sort of pain, so I do genuinely wish him well," he said.
Mr Andrews fronted 120 consecutive daily press conferences during the state's second wave of coronavirus.
He has been the leader of the Victorian Labor party since 2010 and premier since 2014.
