Up to 50 people will be allowed in cafes, restaurants, pubs and clubs from June 1.
Venues will still have to allow at least four square metres of space per person.
Additionally, bookings of more than 10 will be banned, and patrons won’t be allowed to stand.
But state Health Minister Brad Hazzard is concerned people – particularly after consuming alcohol – may fail to comply with the guidelines.
Another three cases of the virus have been recorded in the state, while almost 9000 people were tested over 24 hours.
Across the state, young people in their 20s and 30s make up around 40 per cent of the state’s 3086 confirmed cases.
Mr Hazzard says while showing no symptoms, younger aged carriers can easily pass on the virus to older and more vulnerable people.
“These young people who may think they are invincible are actually not invincible,” he said.
“If you are going to keep your family, your friends and your community and your grandparents safe, you need to be really, really careful.”
He says government officials and hospitality industry representatives will meet on Monday to discuss health guidelines for the reopening.
NSW Police Assistant Commissioner Joe Cassar said there would be extra patrols at busy pubs to enforce the 50-person limit.