One of the new cases was from an overseas traveller, one was linked to the funeral cluster and one remains under investigation with no known source at this time.

The daily case tally has been trending down for the past few days, and Tuesday's numbers is the lowest for the state since the start of July, when 0 new cases were recorded on July 2.

However, NSW Health has called on people to remain vigilant.

Read more: We need to prepare for DV impact of COVID-19

"Even though daily case numbers are low, there have been 16 cases in the last 4 weeks whose source is not identified or linked to clusters, mainly in Western and South Western Sydney, indicating that COVID-19 is continuing to circulate in the community, undetected," NSW Health said in it's daily report.

"So, if you have any cold or flu like symptoms at all, assume its COVID-19 until proven otherwise - isolate and get tested right away; don't delay."

There were 13,736 tests reported in the 24-hour reporting period, compared with 10,806 in the previous 24 hours.

These figures are well down on the testing numbers from last week, when close to 30,000 people were being tested in one day.

NSW Health has identified three areas in Sydney which are being targeted for increased testing and surveillance

These include South Western Sydney, Western Sydney and Sydney east (Sydney, Surry Hills, Darlinghurst, Woolloomooloo, Potts Point, Rushcutters Bay, Elizabeth Bay and Centennial Park).

They have also asked anyone who attended Bankstown Central Shopping Centre on Saturday, August 8 between 10am and 3pm and Sydney Market Flemington on Sunday, August 9 between 8am and 4 pm to monitor for symptoms and get tested if they occur.

There are currently 122 COVID-19 cases being treated by NSW Health, with seven patients in intensive care and five being ventilated.

Meantime, Victoria has also recorded its lowest daily case tally in a month, with 222 new cases reported in the past 24 hours. Sadly, 17 more people in the state have died from COVID-19 in the last 24 hours.