Premier Gladys Berejiklian announced the lockdown extension on Wednesday morning as she announced another 177 cases of the virus had been recorded overnight.
She said 46 of those cases were infectious in the community.
NSW Health also confirmed the death of a woman in her 90s at Liverpool Hospital in Sydney's south-west; there are now 11 fatalities across the state linked to the latest outbreak of the Delta variant.
Ms Berejiklian on Wednesday announced she was also ring-fencing three more local government areas - Parramatta, Campbelltown and Georges River - in an attempt to contain the virus' spread.Insurance Loans Mortgage Attorney Credit Lawyer
The decision to extend the lockdown was reportedly made in crunch crisis talks on Tuesday night after 172 new cases were announced earlier in the day.
NSW Health flagged a further 49 venues in a late-night public health alert on Tuesday, including 13 supermarkets.
While the west and southwestern suburbs remains the epicentre of the highly contagious Indian Delta outbreak, the focus is now shifting to new areas that had so far been largely unaffected.
There were over a dozen exposure sites listed on the Northern Beaches, three on the North Shore, six in the Inner West and two in Sydney's Sutherland Shire.
The new venues of concern were announced amid concerns the state's 'gold standard' contact tracers are struggling to cope with the Delta strain.
As of Monday 14,000 close contacts were in isolation, double the number from three weeks earlier, with 7,500 of those linked to two sites.
Pictured are pedestrians walking with coffees in hand in Darling Point in Sydney's east
A police officer speaks to a member of the public at Rushcutters Bay Park on WednesdayInsurance Loans Mortgage Attorney Credit Lawyer
There are concerns the state's 'gold standard' contact tracers are struggling to cope with the Delta strain. Pictured are two women wearing activewear exercising in Sydney on Wednesday
Coles in Fairfield West (pictured) is just one of 13 supermarkets listed as coronavirus exposure sites on Tuesday night, as Sydney prepares for a four-week lockdown extension
Narrabeen Bunnings (pictured) on Sydney's Northern Beaches has been flagged as a Covid exposure site with infections slowly creeping their way out of the city's south-west epicentre
Gordon McDonalds on Sydney's Lower North Shore (pictured) was also issued a public health alert for Covid on Tuesday night in a bumper list of 49 new venues
- New singles bubble for Sydneysiders living alone, allowing them to have one person over to their home for company
- Construction may restart on Saturday, but those from Covid hotspot LGAs will not be allowed to work
- Daily rapid testing for essential workers is also being discussed
- Similar tests are also being discussed for Year 12 students so they can sit their exams
- More financial support for affected workers is being considered
A potential super-spreader event at Belrose Woolworths on the Northern Beaches has put 5,000 shoppers in isolation, while 2,495 close contacts so far have been linked to the Campsie Centre shopping mall in the city's south-west.
Among the venues exposed are four Coles, seven Woolworths, four Bunnings, a McDonalds, an organic bakery and even a skatepark.
It comes as Sydney recorded a new record high for this outbreak of 172 cases, bringing the total number of infections to since the outbreak began last month to 2,397 - with 79 new worrying mystery cases.
With such spiralling numbers there are now fears that the state's contact tracers are overwhelmed after a woman was told she was a close contact four days after the Campsie Shopping Centre was exposed to the virus for an 11-day stretch.
Of most concern to contact tracers is three venues where Covid transmission has occurred.
Anyone who visited the Madhouse Bakery in Chullora, Sydney's west, on July 21 between 8am to 6pm is considered a close contact and must immediately get tested and self isolate until they receive a negative result.
It is the same story for anyone who attended Bankstown Westpac on July 19, 21, 22 and 23 and for the Flower Power Garden Centre in Terrey Hills on the Northern Beaches from 2pm to 3pm on July 19.
The Northern Beaches has largely been unaffected by Sydney's latest outbreak, which began in the eastern suburbs and has spread dramatically though the city's west.
But now Narrabeen Bunnings has been put on high alert, along with Warriewood Eleven11 and Dee Why Ampol.
Three venues in North Curl Curl were also flagged with Curl Curl Bacino Espresso and the North Curl Curl News agency all listed.
Gym junkies at Bondi Beach in Sydney (pictured) are approached by police officers on patrol on Tuesday, as 172 new cases were announced
Bundeena IGA in Sydney's Southerland Shire (pictured) was flagged as an exposure site after being visited by an infected person
Manly Vale Skatepark was hit with a public health warning, as well as Terrey Hills Golf Paradise.
The trendy Mosman Grain Organic Bakery on the Lower North Shore was also flagged, along with a McDonald's and Woolworths in Gordon.
Bundeena IGA and The Grocery Store in Miranda in Sydney's Southerland Shire were also issued public health alerts along with a string of venues in the inner-west.
Police officers at Sydney's Bondi Beach speak to gym junkies at the area's outdoor gym (pictured on Tuesday) with 20C temperatures tempting people out of their homes
Woolworths in Glenrose Village at Belrose (pictured) has been exposed to Covid over several days, with 5,000 customers and staff now in isolation
Greater Sydney, the Blue Mountains, Shoalhaven, Central Coast and Wollongong have been in lockdown since June 26, but coronavirus cases across the state have only grown - with more and more infectious in the community every day.
Countless people have been unable to work across multiple industries, as the NSW government struggles to contain the spread of the Indian Delta variant of the virus, especially in southwest Sydney.
But one welcome change yet to be confirmed is whether construction work will recommence on Saturday, with a number of safeguards and capacity limits set to be put in place.
Westpac on North Terrace in Bankstown (pictured) was exposed to coronavirus over four days with a worker testing positive. Alerts are out for visitors on July 19, 21, 22 and 23
Workers are also tipped to undergo strict testing to ensure they are not on job sites while infected with Covid-19.
However, tradesmen from Sydney's south-west and west – the areas hit hardest by the virus – still won't be able to work.
The lockdown extension follows a meeting earlier on Tuesday by the NSW crisis cabinet team, which also confirmed a new 'bubble' system for single residents in Sydney.
Single Sydneysiders will now be able to meet up with a friend indoors as part of a new 'bubble' system.
Warning signs in the Lane Cove National Park on Tuesday (pictured) tell people not to gather or sit, with exposure sites now listed far and wide across the city
A health worker is pictured at a Bondi drive-thru Covid testing clinic scrolling though her phone on Tuesday (pictured), with 84,488 tests taken on Monday
It has been designed to combat mental health concerns during lockdown.
Deputy NSW Premier reportedly John Barilaro argued against the system, while Customer Services Minister Victor Dominello was a vocal supporter.
Health Minister Brad Hazzard and NSW treasurer Dominic Perrottet also backed the bubble concept for those without significant others.
Ultimately, mental health concerns won out against possible mobility risks.
Other changes stemming from Tuesday's meeting include a possible tweak of HSC exams for students and financial support for workers during the lockdown.
All essential workers across the city may also be asked to take daily rapid Covid tests, with workplaces and homes still the biggest areas of transmission.
An urgent health alert has now been sent out to shoppers and staff who attended the busy Campsie Centre Shopping Mall (pictured) from anytime between July 14 to 24. It has plunged 2,500 people into 14 days of isolation as close contacts, regardless of a negative test result
Tuesday's increase in cases is the largest in Sydney's latest outbreak and the highest daily rise since April 2020
FIND THE LATEST EXPOSURE SITES NEAR YOU
It comes as new reports emerge that NSW Health contact tracers, one deemed Australia's 'gold standard', are now overwhelmed by the flood of new infections.
One woman who visited Campsie shopping Centre, which was exposed to the virus for 11 days, was informed she was a close contact four days after the alert was sent out - with not every Sydneysider guaranteed to be across the nightly social media alerts for exposed venues.
While contact tracers were quick to instruct staff members of the situation and that they need to self isolate, shoppers were left in the dark.
'We found the time lag from when my wife had attended the supermarket to when we were being notified a bit concerning, particularly as the information had been circulated on social media earlier, which we ignored,' Justin Leach, who is currently in isolation with his wife, told ABC's 7.30.
'So we were concerned at the delay.'
There are now fears NSW Health contact tracers are overwhelmed with the flood of new infections (pictured, an eerily quiet Milsons Point next to the Sydney Harbour Bridge on Tuesday)
The number of close contacts across NSW has skyrocketed over the past three weeks, doubling from 7,000 people in isolation on July 7, to 14,000 as of Monday, July 26 (pictured, a