The border bubble will be extended to a 50km radius for permitted border residents, with an exemption of 100km under the agriculture permit.
Those residents eligible are to be entering NSW for work and education, medical care and supplies, or providing care to a vulnerable person.
"What we're announcing today and we'll work towards over the next 7 to 10 days is that we will lift the border restrictions from the current tight two-and-half kilometre border zone back to the 50 kilometre border zone," Mr Barilaro said.
" This will give more freedom for communities on both sides of the border to work, play and actually function as a community and in itself that is a significant change to what the current restriction is."
Mr Barilaro said there would also be quarantine hubs set up along the border in NSW for agricultural workers.
"We'll look at quarantine venues down on the south coast, here on the Albury-Wodonga border and out west. Initially they will be focused on the ag workforce because we really want to make sure for those farmers who have done it tough in drought, who have struggled, want this bumper season."
Barilaro also said a southern borders recovery committee would be established.
Leader of the Victorian Nationals and Member for Murray Plains Peter Walsh said the NSW Government has finally listened to the call for a much more workable cross-border arrangement.
“We have been to hell and back with these border closures. Whether it’s not being able to go to school, access health services or buy groceries, it has been a very tough few weeks,” he said.
“But after a very productive meeting today with NSW Deputy Premier John Barilaro in Albury I continued the push to get some common sense into the border closures.
“I thank the NSW Government for listening to our communities, but more still needs to be done.
“The Nationals and I will keep pushing for changes to make sure farmers, shearers and hay and grain contractors can get to where they need to be north of the border.
“I’m also seeking further information on what communities near the edge of the 50km bubble can expect when the permits come through in the next week or so.”