Foreign Affairs Minister Penny Wong said concerns deepen every day for the 38 Australians still unaccounted for, as the total death toll surpasses 1200.
Nepali rescue teams are expected to search in locations where many Australians are believed to have been staying, Ms Wong said during a press conference on Thursday.
The dozens of Australians are among 4200 people missing after a glacier collapse near Nepal's border with China triggered devastating floods across towns and valleys.
"I can indicate that after our inquiries that Nepali authorities have advised us that searches are being conducted in the locations identified by Australia, including (The Kailash Hotel) and the Royal Himalaya Hotel amongst others," Ms Wong said.
"In both areas, army personnel are conducting searches on foot with helicopter and drone support."
Nepali authorities will also be provided with telecommunication data to help narrow the last known location of missing Australians.
"We continue to work around the clock to ascertain as much information as we can and provide it to the families of missing Australians," Ms Wong said.
"We all hold on to hope, and we've got to hold on to hope.
"I've also said we have great concerns for the Australians who remain unaccounted for, and those concerns deepen every day, every hour."
A specialist 15-person team of drone operators will also be deployed to help with the effort.
The team will include members of state fire and rescue departments and will use advanced technology to provide rapid mapping and imaging.
There remains no change in the number of missing Australians, after five citizens were confirmed safe on Wednesday.
Australian resources will remain in Nepal "for some time" providing assistance.
Dedicated case officers are also being assigned to next of kin, with "disaster victim identification specialists" ready to be deployed if needed.
Aid supplies aboard a Royal Australian Air Force plane arrived in Kathmandu on Wednesday, carrying humanitarian assistance and disaster relief.
More than 1400 hygiene kits, 2200 solar lights and phone chargers were among the items on board.
Australians have donated more than $4 million to the Emergency Action Alliance to support recovery efforts.
The federal government will provide a further $3 million to match public donations, bringing the ongoing humanitarian support package to a total of $11 million.
Grieving community members in Australia continue to cling to hope their loved ones are safe.
"Lots of people are stuck in the tunnels over there as well, and most don't have any contact ... we are still hopeful that maybe we can get good news," Non-Resident Nepali Association Victorian co-ordinator Mahadev Dhanuk told AAP.
The tight-knit Victorian Nepali community of less than 30,000 is wrapping its arms around those affected by the tragedy, with hundreds uniting at a candlelight vigil in memory of the victims in Melbourne on Monday.
"Many are not personally affected, but culturally we feel like one family. That's why everyone is devastated," Mr Dhanuk said.
"All of the community is trying to overcome their own plight and trying to help and think how can we stand with Nepal?"
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