The state government is looking to ease pandemic restrictions with mask wearing in certain settings and while hospitality venues may be able to welcome more patrons.
On Wednesday, Premier Gladys Berejiklian said they would look at easing restrictions for places of worship and hospitality venues from February 12, "unless something very unexpected occurs" in the next week.
However, capacity limits for weddings and funerals would remain the same, singing and dancing would also remain outlawed due to being "high risk" activities.
"When you attend a wedding or a funeral the attendees know each other and the risk of transmission in an emotional setting is high," Ms Berejiklian said.
Next week the NSW Government will look into reverting from four-square-metres to the two-square-metre rule for hospitality venues and places of worship.
The Premier said mask-wearing in those settings may also be relaxed, but it will remain mandatory on public transport and urged anyone who cannot social distance in a setting to wear one.
"It gives people assurance to get around their daily business, and given the fact you're in an enclosed space for a period of time," Ms Berejiklian said.
The state continued it's clean streak of no reported COVID-19 cases through community transmission as of 8pm Tuesday night.
Two cases of COVID-19 were recorded in returned overseas travelers.
The government was happy testing levels had risen in that 24-hour period - 11,816 tests compared to the previous day of 6,686.
Despite a vaccine getting closer to becoming available, the government wants people to present for testing throughout the coming year.