Recently NSW Premier Gladys Berejiklian called on businesses across the state to re-shift their production to provide vital medial equipment and PPE for heath workers.

Of the 1800-plus businesses that came forward, the Newcastle-designed ventilator is one of two being considered by the government.

"There are now two products that the NSW Government will be supporting through a prototype and pre-production phase," Minister for Jobs, Investment and Tourism Stuart Ayres said on Tuesday morning.

"One is based on a model that's been developed by students at the University of Sydney and another is a model that's been based on a product that's been developed out of company called AmpControl in Newcastle.

"The Sydney University product is based on a tried and true ventilator product deconstructed and rebuilt using modern construction technology and modern construction parts.

"The product out of Newcastle is a more sophisticated product and has incredibly strong potential."

Mr Ayres said this was a fantastic response from NSW industry and a "fantastic response from our research and development groups right across the state".

"It also means that we've got the capacity to develop ventilators here in NSW to supply NSW Health as well as supply other states around the country should demand continue to grow or spike at any stage in the future," he said.

"It's also a reflection of the fact that when Australian innovation really puts its shoulder to the grindstone we've got the capacity to develop world-class products."

While COVID-19 cases might have stabilised across NSW with just three new cases being diagnosed in the 24 hours to 8pm on May 4, Mr Ayres said the pandemic would continue to have a serious impact on the state.

"One thing we know about coronavirus and COVID-19 is that it's going to be around for a while and the demand for ventilators across the world is going to be strong," he said.

"These two products should they meet TGA [Therapeutic Goods Administration] approval, and the indications we have at the moment is that they are definitely on that path, is that they could well turn out to be fantastic Australian and NSW exports across the world stage."

Mr Ayres said the ability to design and manufacture ventilators in NSW should give "everyone in our community the confidence that industry and government are working together to meet this challenge".