NSW will lift a 50-person limit on indoor venues from the first of next month in what the state government has labelled Christmas in July.

Pubs and restaurants are among venues which will instead be guided by the one person per four square metres rule.

“It certainly feels like Christmas in July with Santa’s stocking full of tickets and invites to the cinema, theatre,” Deputy Premier John Barilaro said on Sunday.

“More important this is about rebooting the economy.

“This is about making businesses come out of this crisis and recover from what has been a really, really tough three or four months.”

Outdoor cultural and sporting venues with seating of up to 40,000 will from July 1 be allowed to hold 25 per cent of their capacity.

The 50-person cap on funeral attendees has been lifted effective immediately.

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The relaxation of restrictions is in line with a national cabinet decision to tweak the third stage of easing COVID-19 rules.

Meanwhile, health authorities continue to probe how a teacher at Laguna Street Public School in southern Sydney became infected with COVID-19.

The primary school has shut until June 24, with all of its students told to self-isolate.

Teachers are expected to provide online learning for the hundreds of kids from Tuesday.

People in the Sutherland local government area have been urged to come forward if they’ve been feeling unwell or have flu-like symptoms.

The teacher was one of nine new virus cases recorded in NSW in the 24 hours to 8pm on Saturday.

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The other eight cases are returned travellers who are in hotel quarantine.

There have been 3128 cases of coronavirus in the state, with 47 people being treated as of Sunday.

AAP