More than 80 people test positive for COVID-19 after night at Newcastle club

More than 80 people who attended a Newcastle nightclub in New South Wales have tested positive for COVID-19, with many likely to be diagnosed with the Omicron strain.

NSW Health has confirmed that 84 people who attended The Argyle House nightclub in Newcastle on December 8 have tested positive for the virus.

Authorities said it was "likely" a number of these cases — and some from nearby Finnegan's Hotel a few days later — are the new Omicron variant, with the results of genomic testing still to come.

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As a result NSW is requiring all 680 people who checked in using the QR code at the venue from 9pm on Wednesday, December 8 to 3am on Thursday, December 9 to isolate for seven days and get tested.

Household contacts of anyone who attended should also immediately get tested and isolate until they and the close contact tests negative.

Huge lines have formed at drive-through testing clinics in Newcastle as a result of the cluster's discovery.

Confirmed coronavirus cases linked to a previously reported outbreak on a party boat cruise on Sydney Harbour on December 3 attended the club, authorities said.

NSW Health has classified anyone who was at Finnegan's Hotel from 6.30pm Friday to 2.30am on Saturday as a close contact, directing them to get tested and isolate for a week.

"This venue was visited by confirmed cases of COVID-19," the department said, in a statement on Monday night.

"It is likely some of these cases have the Omicron variant of concern."

Newcastle recorded its first Omicron case on Sunday, a female traveller who had returned from the United Kingdom.

She is isolating at home.

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In the most recent published figures, 536 infections were recorded across the state, with 171 active cases battling the virus in hospital.

No new deaths have been reported.

The Newcastle Omicron case emerged as a NSW resident became the first person in the country to be taken to hospital with the new coronavirus variant in Australia.

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From Wednesday, a new raft of NSW coronavirus restrictions will ease, with the unvaccinated allowed to enter pubs and cafes and other hospitality venues and shops.