However, a lockdown in regional NSW will be extended to at least September 10, given the number of cases in Dubbo and across western NSW.
The entire state is currently locked down and police are cracking down on lockdown compliance as authorities battle to contain the spread of the virulent Delta strain.
Of the 1029 cases in the 24 hours to 8pm on Wednesday, the isolation status of 844 remains under investigation.
The three people who died were a man in his 30s, a man in his 60s and a man in his 80s, all of whom were unvaccinated. The death toll for the current NSW outbreak now sits at 79.
There are almost 700 COVID-19 patients in hospitals in NSW, with 116 in intensive care beds and 43 ventilated.
NSW Premier Gladys Berejiklian announced on Thursday that from September 13, up to five people - fully vaccinated adults or children - can gather outdoors, provided they are not from 12 council areas of concern.
For those in the 12 areas of concern, households with all adults vaccinated can gather outdoors for recreation, such as picnics. However, they may not do so with other households.
NSW hit its six million jab target earlier this week and the government's crisis cabinet met overnight to discuss easing restrictions.
Also looming are details of a plan to return students to school and how to conduct the HSC amidst the COVID-19 crisis.
Ms Berejiklian said further freedoms would be restored at 70 per cent double-dose vaccination coverage including the removal of family, industry, community and economic restrictions.