The global recall covers Prius and Auris models produced between October 2008 and November 2014 and affects 8,476 vehicles sold in Australia.
The call comes just one month after another recall where more than a million hybrids across the globe were found to have a technical problem that could cause fires in the vehicle.
Another 830,000 are in North America, 290,000 in Europe, 3,000 in China, and the rest in other parts of the world.
Toyota Ireland said they will be contacting all affected customers directly by mail to arrange to have their vehicles checked.
"The involved vehicles were created to enter a failsafe driving mode in response to certain hybrid system faults", Toyota said.
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"If this occurs, the vehicle could lose power and stall".
Toyota said it would update the software of the vehicles for free to remedy the problem.
Toyota said it had received three reports from Japan by the end of September that related to the problem and it reported them to the transport ministry.
In 2015, it had to recall 6.5 million vehicles globally over a faulty window switch that was liable to short-circuit.
Satoru Takada, an analyst at Tokyo-based research and consulting firm TIW, said the impact of the recall couldn't be assessed immediately but it "at least raised concerns as Prius is Toyota's leading brand".