People who have recovered from COVID-19 in Australia can donate their plasma to contribute to the development of a potentially lifesaving treatment.

Australians who have recovered from coronavirus will soon be able to donate their plasma to help create a new treatment for other patients.

Blood products giant CSL has started development of a potentially life-saving COVID-19 treatment at its Melbourne-based Broadmeadows facility.

The project will rely on recovered coronavirus patients donating their plasma, which contains antibodies that fight the SARS-CoV-2 virus.

The company will firstly collect a small sample of plasma so it can detect, purify and concentrate these antibodies, to make what it calls 'COVID-19 Immunoglobulin'.

The second phase will involve a larger batch of COVID-19 Immunoglobulin being produced for clinical trials in Australian hospitals, to establish the safety of the product.

It's hoped the treatment will eventually be used on patients seriously ill with complications caused by coronavirus, particularly those who may need ventilation.

"This is a treatment, not a vaccine," CSL's Chief Medical Officer Dr Charmaine Gittleson told reporters on Wednesday.

"The hope is that the COVID-19-specific antibodies combine to the virus and neutralise it, assisting that patient in recovery and preventing progression."

The company estimates about 800 plasma donations will be required to treat 50-100 critically ill patients in a clinical trial.

More than 5000 people have recovered from coronavirus in Australia.

The Australian Red Cross Lifeblood will collect donations from May 11.

"We'll be talking to hospitals and health departments in order to recruit donors as well as looking to our existing donors to identify suitable participants," Lifeblood chief executive Shelly Park said in a statement.

"This work may ultimately help treat patients suffering from this terrible disease and I would urge anyone who has recovered from a confirmed case of COVID-19 who thinks they may be eligible to donate blood, to contact us."

Health Minister Greg Hunt said CSL, and Australia more broadly, is leading the world in research and treatment of the deadly disease.

"We don't want to over-promise, but in particular this treatment has the potential to assist those people who are facing extreme conditions, ones who are in ICU, those who are in an advanced stage of the effects of COVID-19," Mr Hunt told reporters.

Trials using plasma as a treatment for patients suffering from COVID-19 are also underway in other countries including Canada, China, the United Kingdom and the United States.