Labor delegates at its national conference in Adelaide enshrined a conscience vote on the issue into its national platform.
The topic was the only issue that was debated on the floor of the triennial policy summit, with all other proposals being supported unopposed.
Anthony Albanese said while he supported voluntary assisted dying, discussions with doctors and health professionals should still be done face-to-face.
"It is important that people have the right to die with dignity, but it's also important that protections be placed around it," he told the ABC's Insiders program on Sunday.
"If someone has a heart attack, they need a doctor, they can't do that over telehealth, and I think that someone ending their life is just as important."
While Labor delegates agreed to enshrine a push for telehealth for voluntary assisted dying and conscience vote on the issue into its platform, it remains up to the parliamentary team on how, and when, it is implemented.
Mr Albanese said it would be a decision for cabinet on how the issue progresses in parliament.
"Governments determine what governments do around our cabinet table. What the conference does is put a general direction of what they want," he said.
"What I will allow is for colleagues to express a view about what processes should occur."
The issue is just the second to be granted a conscience vote in the party's platform, following abortion.
Voluntary assisted dying is legal in all states and the ACT, with the Northern Territory parliament set to vote on legalising it in August.
The ban on telehealth being used for voluntary assisted dying was introduced by the Howard government.
Doctors face fines of up to $300,000 for discussing matters about voluntary euthanasia over the phone.
In supporting the amendment at Labor's conference, union delegate Steph Naunton said the proposal was about heath equity for those in regional and remote areas.
"Accessing health services should not depend upon your postcode," she said.
NSW MP Sally Quinnel told the conference telehealth could not solve all health needs.
"The conversations we're speaking about today are literally life and death conversations," Ms Quinnell said.
"This is complex, nuanced, and shouldn't be done over a Zoom call - it happens in person with empathy, careful listening and human interaction."
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