The state recorded zero local COVID-19 cases in the 24 hours to 8pm on Tuesday, as well as two cases in travellers in hotel quarantine.

The tally comes from more than 9700 tests, which NSW Deputy Chief Health Officer Jeremy McAnulty says is too low.

"The continuing low testing numbers is a concern as the virus may still be circulating in the community," Dr McAnulty said in a statement.

Premier Gladys Berejiklian said restrictions would soon be eased.

"We'll be having those discussions and getting the advice today. I'm hoping to make a announcement by the end of the week," she told ABC TV before Wednesday's crisis cabinet meeting.

"People will look forward to welcoming more people into their homes and mask policy moving forward."

She also indicated there would be concessions in the hospitality sector.

However, Ms Berejiklian indicated masks would remain mandatory on public transport as the government encouraged workers to return to the office.

"People will feel safer if there's masks on public transport," she said.

Masks are currently compulsory indoors in Greater Sydney, the Central Coast and Wollongong, while five visitors are allowed in homes and a maximum of 30 people can gather outside.

NSW Health is also urging people in southwest Sydney to monitor for COVID-19 symptoms after virus fragments were detected in sewage at the Liverpool waste treatment plant.

Australian Associated Press