Sydney, Jul 4 (IANS): Australia's most populous state of New South Wales (NSW) saw another new high in daily increase of Covid-19 cases, but authorities said "green shoots are there" in the latest outbreak.

The state recorded 35 new locally acquired Covid-19 cases on Saturday, the highest single-day spike in the the past year, of which 29 were linked to previously confirmed infections, reports Xinhua news agency.

The total case number of the current outbreak reached 261.

Among the 35 new cases, 23 were in isolation throughout their infectious periods.

A further three cases were in isolation for part of their infectious periods.

Nine cases were infectious in the community, according to NSW Health.

"That is a great result and we have seen those testing numbers stay at very high levels consistently during the lockdown, which is exactly what we want to see," NSW Premier Gladys Berejiklian said on Saturday.

"While as predicted the number of cases is going up, we are seeing a greater proportion of those cases in isolation, which is exactly what we want to see," she said.

Saying the "green shoots are there and are demonstrating the lockdown is having the desired effect", Berejiklian didn't say whether the two-week lockdown would be further extended after July 9 as the local transmission and exposure cites continued to increase.

"The next few days will be telling, but so far I'm relieved that there hasn't been a huge surge in numbers," she said.

At the same time, the neighbouring state of Queensland ended the lockdown on its capital city of Brisbane and other two local government areas despite eight new cases.

The state of Western Australia came out of a four-day lockdown without recording any new cases.