NSW will work with the federal government to look at how supply and cultivation can be managed for medicinal cannabis trials.
NSW is continuing to look at ways to ease the suffering of cancer patients as it works with the federal government on protocols for growing and supplying medicinal cannabis.
Premier Mike Baird said his state would happily lead the country after he announced cannabis clinical trials last year to help treat terminally-ill adults, chemotherapy patients and children with severe epilepsy.
The move followed the premier's meeting with Daniel Haslam, a 25-year-old who used cannabis to relieve his symptoms in his five-year battle with bowel cancer.
He died in February, leaving the lobbying of politicians for the legalisation of medicinal cannabis to his mother Lucy, a retired nurse, and his father Lou, a former police officer.
On top of the trials, since backed by Victoria and Queensland, NSW police were given discretionary powers not to charge terminally-ill cannabis users and their carers.
Mr Baird offered to help other states considering similar changes.
"We have a scheme that's working here in NSW but if we can expand it, enhance it and bring it forward to other people, well, we are up for it," he told reporters on Sunday.
"Whether it be through the trials, whether it be through compassionate access, our centre of medical excellence is working very strongly on this and we're very happy to lead the country on it."
His comments come after the federal government announced plans to amend the Narcotics Drugs Act 1967 to permit controlled cultivation of cannabis for medicinal and scientific purposes.
Trials will continue to help determine the most effective forms and doses in which the drug should be dispensed.
Supply and regulation remain one of the biggest challenges, Mr Baird said.
"We'll work with our centre of excellence, with the federal government, to look at what we can do and how quickly we can do it," he said.
The federal government on Saturday said it will create a licensing scheme within the Department of Health to ensure cultivation meets international obligations.
That will be done in conjunction with state and territory laws and will be discussed at the next meeting of the Council of Australian Governments.
There are no plans to legalise recreational use, federal Health Minister Sussan Ley said.