Pressure has been mounting on authorities in China's most populous city, and one of its wealthiest, from residents growing increasingly frustrated as curbs drag on, Reuters reported.
Shanghai is grouping residential units into three risk categories as a step towards allowing "appropriate activity" by those in neighbourhoods with no positive cases during a two-week stretch, city official Gu Honghui said.
"Each district will announce the specific names of the first batch (of communities) divided into the three types, and three subsequent lists will be announced in a timely manner," Gu told a news briefing.
While it was not clear how many of the city's 25 million residents stand to have lockdowns immediately eased, the step promises some relief for many cooped up for more than three weeks in the battle against China's biggest outbreak since coronavirus was first found in central Wuhan in late 2019.
Gu said Shanghai was divided into 7,624 areas that are still sealed off, with a group of 2,460 now subject to "controls" after a week of no new infections, and 7,565 "prevention areas" to be opened up after two weeks without a positive case.
Those in "prevention areas" who move around their neighbourhoods must observe social distancing and could be sealed off again if there are new infections, Gu added.
One of the first districts to release its list was the industrial area of Jinshan on Shanghai's southwestern edge, which posted the names of residential sites still in high- and medium-risk categories.
China's zero-tolerance approach to COVID-19, prescribing central quarantine for anyone testing positive even in the absence of symptoms, is increasingly strained by the highly infectious, though less deadly, Omicron variant.
The policy has halted nearly all international travel, and is taking a growing economic toll as cities impose curbs, with southern Guangzhou and eastern Ningbo the latest to do so, even as other countries try to live with the disease.