While the spread has slowed within China, Morrison said the escalation across Europe, Asia and the United States makes the chance of global pandemic more likely.
There is still no need to stop mass gatherings, such as football games, he added, at a press conference also attended by Health Minister Greg Hunt.
Morrison is one of the world's first leaders to acknowledge the threat of the virus spreading beyond global containment efforts.
Australia has 23 cases of coronavirus, though there has been no community transmission of the virus.
The coronavirus has infected more than 80,000 people and killed nearly 2,800, the majority in China.