Newton-John, a British-born, Melbourne-raised performer, died in her sleep at age 73 inside her California home on Monday, her husband John Easterling announced on social media.

Daniel Andrews, premier of Victoria, was asked on Tuesday about offering her family a state memorial, Mr Andrews said: "As for celebrating her life ... her music and film and all the other amazing contributions that she made, we would, of course, want to speak to the family and be as respectful as we can."

Currently, a formal offer has not been made according to a spokeswoman for Premier Daniel Andrews told AAP on Wednesday that "no offer or acceptance has occurred" at this time but did not rule out the possibility.

Goldsmith, an actress, appeared on A Current Affair on Tuesday night to remember the Grease star in the wake of her tragic passing.

She said her family would accept the offer of a state funeral.

"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.

A number of famous Melbourne landmarks - including Flinders Street Station, the Arts Centre, the MCG and other sporting venues - were lit up in pink on Tuesday night to mark Newton-John's contribution to cancer awareness and research.