Premier Mike Baird says the state government is "doing everything it can" to ensure BlueScope Steel continues to operate in the Illawarra.
During a visit to the region on Thursday, Mr Baird stressed he was aware of the community's concern surrounding future steel production at the company's Port Kembla plant.
"We all feel that, I feel that, I hear [from] the local members that feel that, I absolutely understand it," he said.
"It's a critical part of the local economy; it provides jobs, not just currently but for the children of this region, and we want to do everything we can to support it."
Mr Baird has met with representatives from the company and commended BlueScope chief executive Paul O'Malley for "looking at every single option he can to maintain its long-term viability".
"That's what it's about at this point, so we support that effort and we're happy to work collaboratively and constructively with them," he said.
The Premier would not detail whether the company had asked for government funding.
"The CEO is very determined to keep the operations going; he is committed to the region and is doing everything possible to ensure that remains in place," he said.
"Obviously, we are very happy to constructive work alongside them, and that is what I have said to the CEO and what we said to the company, so we look forward to the plans they are bringing forward."
Mr Baird said the government would work with BlueScope over coming weeks. The company's ASX statement and future direction will be outlined in Sydney on Monday.
"They have said they want to get on and put some plans together and then, as part of that, they want to come back and discuss options with us," he said.
"We're committed to discussing with them, we understand the importance of the operations to this region and we will do what we can to support them in their efforts."
The Premier was non-committal when asked about his position on a procurement policy using a minimum percentage of Australian-made steel, which is at the centre of a current campaign by the South Coast Labour Council and the Australian Workers Union's regional branch.
Mr Baird said the infrastructure being rolled out across the state was "providing a huge opportunity for local manufacturers to participate across a range of sectors in that [procurement] process".
"We are doing everything we can to provide opportunities for local providers to participate in those tenders and obviously as part of that we have to keep considerations in terms of value for the taxpayer and support for the overall economy and in the context that's the way we operate in procurement," he said.