Georges River and Bayside residents who are vaccinated will be allowed two hours of outdoor relaxation a day from Monday.
Premier Gladys Berejiklian announced the "tweaking" of previously announced freedoms, which start on September 13.
The announcement came at Friday's COVID media briefing, where 1542 new locally acquired cases and nine deaths were reported, including that of a man in his 70s from "Sydney's southern suburbs", who died at at home.
Ms Berejiklian said, from Monday, previously promised freedoms would "kick in".
"There are a couple of extra tweaks we have made to make it a bit easier for people," she said.
"In LGAs of concern, you can still exercise unlimited but also, if you are vaccinated, your household can go out for a picnic or recreation for two hours every day.
"That has to be within the five kilometre radius from your home.
"Everything else stays the same, including the curfew and the 5km radius.
"For other areas, you will be able to have five vaccinated adults who live within the LGA or within 5km of their home come together so long as all the adults are vaccinated.
"That will allow five adults and kids under 12."
Ms Berejiklian also announced, from Monday, the daily COVID media conference would not be held, but a video would be uploaded by NSW Health detailing the case numbers and vaccination rates.
Ms Berejiklian said she and Health Minister would have news conferences irregularly as required.
The Premier rejected the suggestion she was going into hiding ahead of an expected peak in COVID cases next week.
She said she would be "accountable 24 hours a day", but "all of us have to get used to living with COVID".