Residents of Bayside and Georges River local government areas will be able to enjoy unlimited outdoor exercise from 5am tomorrow.
The new rules, which come into effect tomorrow, are subject to existing rules surrounding outdoor exercise across Greater Sydney.
Residents of LGAs of concern had previously only been allowed to exercise outdoors for one hour a day.
A ban on outdoor recreation remains in place.
A curfew, from 9pm to 5am, will remain in place in LGAs of concern.
The change was announced by NSW Premier Gladys Berejiklian at today's COVID-19 press conference, in response to pleasing vaccination rates.
Ms Berejiklian said NSW had reached a new milestone of 7 million vaccinations, and was expected to reach the target of 70 per cent of eligible people having their first dose sometime today - making NSW the first state or territory to do so.
Ms Berejiklian said the decision about increasing outdoor exercise was made in consultation with health experts. She said outdoor exercise offered a low risk of transmission and the greatest benefit to the health and well-being of residents.
NSW Health said: "From 5am tomorrow (Friday) morning, exercise will no longer be limited to one hour in the local government areas of concern.
"The curfew will still apply, but exercise is unlimited outside of those hours."