NSW Transport Minister David Elliott addresses media later on Sunday. The deal is set to include 12 consecutive days of free travel during the Easter holiday period, according to Nine Newspapers.
The announcement comes days after Mr Elliott announced he had brokered a deal with the Rail, Tram and Bus Union that would avert weekly disruptions to the train network.
Last month, a long-running dispute between the government and the union escalated into an 11th hour decision from the government to shut down the city's trains, leaving thousands of commuters stranded for 24 hours.
The union then began threatening to take further, weekly industrial action unless the government institute Fare Free Fridays, to compensate the city's commuters for the disruption.
Mr Elliott on Friday said he had come to an agreement with the unions, and a new project benefiting the people of the state would be activated in the coming weeks.
"The union and I are committed to offering Fare Free Days that see commuters, their families and small businesses get the most economic benefit from public events," he said.
The government and union are in the midst of negotiations over a new enterprise bargaining agreement.
There have been various disputes over safety guarantees, hygiene and concerns over the possible privatisation of the network.
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