Music festivals and nightclubs in NSW could make a comeback sooner than expected if COVID cases continue to remain low. 

In a new statement, the NSW Government confirmed that festivals and nightclubs will not return in July, but that August could be an option if progress continues. 

"Music festival and nightclubs will continue to remain closed in July as the Heath advice remains that these venues and activities pose a high risk of the virus spreading," the statement reads.

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"It is anticipated that restrictions will be eased further in August if community transmission of the virus remains low."

The news comes as the Government announced that the 50-person limit on pubs and venues across New South Wales will be scrapped from 1 July.

"We still need to be vigilant because we have to assume the virus hasn’t gone, and there is no vaccine or treatment on the immediate horizon," Health Minister Brad Hazzard said.

“So I encourage people to go about their daily lives, enjoy playing sport or a night out visiting friends but do it in a COVID safe way – maintain physical distancing, good hygiene and if you feel unwell stay home and get tested.”