Another resident of Sydney's Dorothy Henderson Lodge has died from the coronavirus, bringing the state's COVID-19 death toll to 19.
The 90-year-old male is the sixth resident of the Macquarie Park aged care home to die from COVID-19, Baptist Care says.
Chief executive Ross Low says he is sorry to be sharing the "distressing" news again.
"I have been on the phone this afternoon with the resident's family, and I grieve with them in their loss. Our residents, and you, their families, are why we exist," he said in the statement on Monday evening.
"It is nothing short of heartbreaking to have another resident lose their life to this virus."
The number of confirmed COVID-19 cases in NSW is 2637.
The state recorded 57 new cases on Monday, a drop on the previous day although that's partly due to fewer tests being done over the weekend, NSW Health says.
There are 40 people in intensive care units, with 22 requiring ventilators.
Premier Gladys Berejiklian has welcomed the fall in new cases but says those acquired through community transmission remain a concern.
NSW Health's Dr Jeremy McAnulty says case numbers in recent days have been "really hopeful" and it seems contact tracing and social distancing measures are working.
"But it's too early to make too many assumptions; we need to keep a very close eye on these figures," Dr McAnulty said on Monday.
There will be increased testing in communities with evidence of local transmission following a drop-off in testing over the weekend, he added.
The latest COVID-19 figures include 595 infections locally acquired from a known case while 397 were locally acquired from unknown contacts.
Testing has been extended in areas where authorities have seen evidence of local transmission, including in Broken Hill, Lake Macquarie, Nowra, South Nowra and Port Macquarie, and the Sydney suburbs of Waverley, Woollahra, Waverley, Ryde, Dee Why and Manly.
A drive-through testing site run by St Vincent's Hospital has been set up in Bondi after clusters developed within Sydney's backpacker community.
Meanwhile, the Ruby Princess cruise ship docked in Port Kembla, near Wollongong, on Monday as a criminal investigation gets under way.
The vessel is linked to 622 COVID-19 cases and 12 deaths.
The investigation led by the NSW Police homicide squad aims to find out why passengers were allowed to disembark from the ship in Sydney on March 19 and disperse around the country despite concerns some might have contracted the illness.
It will cover the actions of the port authority, ambulance, police, NSW Health and ship operator Carnival Australia.
The ship is expected to spend up to 10 days in Port Kembla as its 1040 crew members undergo medical assessments, treatment or emergency extractions.
About 200 of them have symptoms of the illness. Two of the crew members were taken off the ship yesterday for further treatment.
"We will continue to make sure there's the highest level of security for the locals down in southern NSW," Police Commissioner Mick Fuller said on Monday.
The Ruby Princess is the only cruise ship left in NSW waters.
Mr Fuller said about 4500 Australians have been quarantined in hotel rooms across Sydney after arriving at the airport via 97 international flights.
On Wednesday, the first of the hotels to take international arrivals will close and more than 200 people will return home.
Meanwhile, NSW police are enforcing self-isolation regulations, with 98 infringement notices issued across the state since March 17.
Australian Associated Press