Most of NSW is locked down and police are cracking down on compliance measures as authorities battle to contain the spread of the virulent Delta strain.
The two deaths - both in western Sydney - take the toll for the current NSW outbreak to 186, and 242 for the entirety of the pandemic.
There are 1253 COVID-19 patients in NSW in hospital, with 231 in intensive care and 104 on ventilators.
"Cases continue to be primarily at highest rates in western and southwestern Sydney, although throughout Greater Sydney and regions we are seeing cases," NSW Health's Jeremy McAnulty told reporters.
Residents in NSW have been told to brace for a peak in COVID-19 case numbers this week, while the regional town of Yass is back in lockdown.
Premier Gladys Berejiklian on Monday denied the unvaccinated would have their freedoms restored at 80 per cent double-dose vaccination coverage in NSW, saying details were still being finalised.
At 70 per cent double-dose coverage, expected to happen in about a month, the fully vaccinated will have several freedoms restored allowing for household visits, gatherings and hospitality.
More than 46 per cent of people over 16 are currently fully jabbed.
The premier will on Tuesday meet with the mayors from the 12 Sydney local governments areas with the toughest restrictions after previous requests to link up with the group were rejected.
Canterbury Bankstown Mayor Khal Asfour says he has been "trying for weeks to meet with her to raise issues ranging from curfews, to more vaccines and financial support".
"Beaches are open but our pools are shut. Under the current health orders council pools are NOT allowed to open," he posted on Facebook.
President of the Lebanese Muslim Association Samier Dandan said the "empty rhetoric of togetherness" was evident last weekend.
Deputy Premier John Barilaro will also meet with regional mayors.
Meanwhile, the state government has announced an additional $287.5 million in COVID-19 financial support to help workers and vulnerable communities in metropolitan, regional and rural NSW.
The funding will see COVID-19 emergency hardship payments, test and isolate support payments and community empowerment grants expanded across all of NSW.
Meanwhile, up to five fully vaccinated adults who live outside the 12 Sydney COVID-19 hotspot areas can now gather outdoors within five kilometres of their homes.
Vaccinated households that live in the 12 local government areas of concern can gather outdoors for recreation for two hours, outside curfew hours, and within five kilometres of home.
But this no longer applies to Yass Valley Council area in the Southern Tablelands which has gone back into lockdown following a positive COVID-19 case, three days after restrictions were eased.