The Australian city could see international visitors as early as next month but the plan needs federal approval.
Australian state officials are planning to allow vaccinated travellers unrestricted entry into Sydney from November.
But the plan for no-quarantine travel into Australia’s largest city still needs federal approval.
Prime Minister Scott Morrison is yet to respond to the New South Wales plan announced on Friday.
But if approved, it would accelerate the return of travel into Australia for the first time since the pandemic.
“We are opening Sydney and New South Wales to the world and that date will come in on November 1,” said Premier Dominic Perrottet.
“We want to be able to say to the world that we treat everybody equally, and if you are fully vaccinated you can engage in this wonderful state.”
Australia has kept its international borders shut since March 2020. It has allowed entry almost exclusively to citizens and permanent residents who have had to do mandatory 14-day hotel quarantine at their own cost.
Last month, Mr Morrison indicated that the border rules would change in November – to allow Australians to leave the country and make it easier for those overseas to return.
Canberra’s plan required those entering the country to do a week-long home quarantine.
But under the NSW plan, authorities say they will freely welcome all international travellers with no quarantine – as long as they are fully vaccinated and pass Covid tests prior to their flights.
The proposal depends on a green light from Canberra as the federal government controls visas and entries into the country.
The NSW government acknowledged that it needed the federal government’s support.
But it said its decision to abolish quarantine was aimed at reconnecting its economy to the world.
“I want New South Wales to rejoin the world. We can’t live here in hermit kingdom,” said Mr Perrottet.
A November 1 reopening would prioritise fully vaccinated people “returning to Australia and coming here for work or for leisure”.
“This is a huge pickup for our tourism industry,” he said.
Sydney only emerged from a 107-day lockdown on Monday but is charging ahead with reopening to the rest of the world. NSW authorities say their state is leading the way for the nation.
If the city does welcome international visitors from November, this freedom would likely come while most Australians are still banned from travelling between states.
In a bid to remain Covid-free, Queensland, Western Australia, South Australia, Tasmania and the Northern Territory have kept their borders shut to residents from infected states.
Those states have not specified when they might reopen.
Mr Perrottet acknowledged the discrepancy on Friday saying: “I think people in New South Wales will be flying to Bali before Broome [in Western Australia].