Deputy Premier John Barilaro has confirmed the two COVID cases detected last week in Merimbula are false positives.
It means there are no active cases in the Bega Valley and there has not been any cases detected in the shire for more than a year.
Mr Barilaro, the Member for Monaro, says the two false-positive cases underwent a series of tests.
"That's three tests and as far as I'm concerned, they aren't now positives."
The Southern NSW Local Health District says close and casual contacts of the previously reported COVID-19 cases in Merimbula no longer need to isolate.
Mr Barilaro says an announcement will be made on Thursday as to whether restrictions in the Bega Valley will change now there are no confirmed cases in that shire.
"We will be reviewing those issues today. We've started that review with NSW Health," he said.
"Crisis committee meets this afternoon and there may be more conversations tomorrow morning.
"But the intention is at 11 o'clock tomorrow we'll be announcing the next stage of either those going into lockdown ... or those who are coming out."
New cases in the Eurobodalla
Today, the Southern NSW Local Health District announced two new cases of COVID in the Eurobodalla.
It includes one new case in Batemans Bay and one new case in Catalina.
Both are close contacts of known Batemans Bay cases.
It now takes the number of cases detected in Batemans Bay to five.
This is the first case of COVID in Catalina.
There were also two cases of COVID recorded in Cooma last week, taking the current total of cases in south-east NSW to eight.
Mr Barilaro says the cases in the Eurobodalla and Snowy Monaro shires, which border the Bega Valley, will be taken into account when considering whether to ease lockdown restrictions.
Sewage detection in Bermagui
NSW Health has also today announced fragments of COVID have been found at the Bermagui sewage treatment plant.
The plant serves about 1,800 people and includes sewage from Wallaga Lake, Fairhaven and Akolele.
It means COVID fragments have now been found across all four sewage treatment plants in the Bega Valley over the past four weeks.
Bega Valley Shire Council says it has been sending samples in Eden, Bermagui, Merimbula and Bega twice weekly to NSW Health for testing.
The Southern NSW Local Health District has confirmed fragments of COVID have also been detected in Narooma's sewage.
There are no known cases in that town.
Health authorities are calling on anyone with the mildest of symptoms to get tested.
Testing clinics have been set up in Merimbula, Bega, Moruya, Batemans Bay, Cooma and Jindabyne.
A pop-up drive-through testing clinic has also been set up in Eden after fragments of COVID were detected in the town's sewage.
NSW Health and the Southern NSW LHD are also updating their lists of exposure sites in relation to the positive cases detected in south-east NSW.
