The ABC's Antony Green called the seat for the Liberal candidate Jordan Lane with a margin of just 60 votes as counting of remaining postal votes continued on Saturday.
Labor's Lyndal Howison oversaw a major swing for her party of almost nine per cent in the formerly safe seat held by retiring Liberal MP Victor Dominello.
The count has see-sawed between the Liberal and Labor candidates after it initially looked like Labor had snatched it.
Ms Howison said she was waiting for the final count and regardless of the "incredibly close result" would continue to fight for her community.
"It's been a joy to meet and reconnect with so many hardworking and kind people in our electorate," she posted on social media on Saturday.
"Ryde is my home and regardless of the final result, I'll always fight for what's best for our community.
"Thank you to everyone who has sent messages of support and to the hundreds of people who helped out in the campaign."
Labor had already lost the chance to form a majority government, having won 45 seats, just shy of the 47-seat requirement.
Premier Chris Minns will likely be forced to engage with the crossbench, made up of nine independents and three Greens, in order to pass legislation.
10°C