Schedule to kick-off on June 29 and run through to July 2 to coincide with NAIDOC Week, the Port Stephens-based event had no choice but to postpone after the NSW government's updated restrictions on Wednesday.

"While we know this will be very disappointing for the young people who worked so hard to make their Nations team, and their community and supporters, we will start planning the rescheduled Nations for the September school holidays," a NSW PCYC spokesperson said in a statement.

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"We have made this hard decision to protect the health of our Nations of Origin athletes and their communities, who would be travelling to Port Stephens from regions across NSW.

"We also want to ensure the health of our staff, our supporters, our volunteers, and the public.

"Resilience is one of PCYC's core values and we will draw on it to ensure Nations of Origin is back bigger than ever in September.

"We hope you will be there with us to cheer on the teams."

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The event, which was also cancelled in 2020 because of COVID-19, allows more than 1,300 young people from across NSW will represent their Aboriginal Nation in sports such as gymnastics, basketball, netball, football fives and rugby league.

The Shoalhaven-based YUIN Snakes, who had been training for weeks under coaches Nathaniel Morrison and Talia Atfield, are one of more than 20 Nations that compete in the annual games, which empowers individuals and teams, made up of 70 per cent Indigenous and 30 per cent non-Indigenous youth, to learn important life skills such as discipline, patience, communication, healthy behaviours and problem-solving.