The coronavirus-related travel ban preventing Chinese visitors and students from entering Australia, which was due to end this weekend, will be extended for a further week.
"We did not take this decision lightly," Prime Minister Scott Morrison told reporters in Canberra on Thursday, after a national security committee meeting.
"We are very mindful of the disruption and economic impacts of these arrangements, but I note Australia is one of 58 countries that has introduced some form of travel restrictions."
The Chinese embassy in Canberra responded on Thursday night to the move.
"We express our deep regret and dissatisfaction over the Australian government's announcement," a spokesman said in a statement.
"The World Health Organisation has repeatedly stressed that it does not recommend putting travel and trade restrictions on China.
"Only Australia and a small number of countries have taken such extreme measures which are an overreaction indeed.
"We urge the Australian side to ... respect WHO's professional recommendations, and lift the restrictions as early as possible."