People who test positive for Covid in Scotland can end self-isolation after seven days if they have no fever and record two negative lateral flow tests.
The move, which takes effect from midnight, brings Scotland into line with England, Wales and Northern Ireland.
Household contacts of people with the virus will be allowed to take lateral flow tests rather than self-isolating, as long as they have had their booster.
Asymptomatic people who return a positive lateral flow test will no longer have to confirm their result with a PCR.
The first minister says the changes are "not completely without risk" but strike "an appropriate balance".
Nicola Sturgeon says existing Covid rules, such as restrictions on large events, will stay in place and will probably remain until 17 January.
A further 16,103 positive cases have been reported in Scotland, with five further deaths. There are 1,223 people in hospital with Covid, with 42 in intensive care.
The FM also says she will set out more "sustainable" long-term ways of dealing with new variants as Omicron is not expected to be the last one.
She says she expects continued growth in the level of infections as people return to school and work - and that infections will become more widespread in the days to come.
Ms Sturgeon confirms 26.9% of all tests carried out on Tuesday were positive.
She adds that 1,223 people are in hospital with recently-confirmed Covid, which is up 71 on yesterday and 544 more than were in hospital this time last week.
The first minister says 42 people are in intensive care, the same number as yesterday.
A further five deaths have been reported following a positive test.
The first minister announces 16,103 new Covid cases were recorded across Scotland on Tuesday.
The highest daily total - 20,217- was reported on Monday while a further 17,259 cases were confirmed yesterday.
After wishing colleagues a happy new year, First Minister Nicola Sturgeon says she will set out immediate changes to self-isolation rules and testing.
She adds that there will be no additional measures but says existing measures will continue for another week.
The first minister is about to deliver her statement on the latest Covid developments in Scotland.
Nicola Sturgeon has faced calls for the self-isolation period to be reduced.
Will she announce it is to be cut or will the current rules stay in place? Stick with us here.
Lucy Whyte
BBC Scotland education correspondent
Image source, Getty ImagesAs schools return from the festive break, a smooth start to the new term isn't guaranteed.
Unlike last year, classes are set to start back on schedule and in person but, given the soaring number of Omicron cases, there will be much debate over whether this is the right course of action.
BBC Scotland takes a look at three main issues schools will have to overcome.
Read more here.
Chris McLaughlin
BBC Scotland Sports News Correspondent
Image source, Getty ImagesIt has been suggested that all of this year’s Six Nations rugby matches could take place in England
While the wider business community continues to seek support, sporting bodies are asking the Scottish government to provide clarity on the return of fans.
Current restrictions, imposed just before Christmas, limit supporter numbers to 500 but it’s unclear when that will change.
Reports suggest plans are being prepared that could see all of this year’s Six Nations rugby matches taking place in England, where full stadiums are still allowed.
Scottish Rugby says its preference is still to play home fixtures in Edinburgh.
In football, the SPFL has already written to the Scottish government, asking if restrictions will be eased before the Premiership clubs return from their winter break on 17 January.
The governing body has also asked for clarity on funding for clubs who have lost out financially due to the current restrictions.
Image source, Getty ImagesHere's a bit of a catch-up to give some UK context ahead of the first minister's statement...
It was announced earlier that Covid testing rules are to be eased in England for people without symptoms, who will no longer need to confirm a positive lateral flow test with a PCR.
The UK Health Security Agency said the rule change will apply from 11 January and apply to England only for now.
Under the new guidance, those who have symptoms and have a positive lateral flow will still have to isolate but will no longer take a PCR - the type of test which is sent to a laboratory for analysis.
Image source, Getty ImagesNicola Sturgeon said last week she hoped to be able to give an update on changes to the self-isolation period, so expect that to be high on today's agenda.
Some opposition MSPs, including Scottish Tory leader Douglas Ross, have called for the self-isolation period to be cut from 10 days to seven, if two negative tests are returned in the final two days.
This change has already been made in England, Wales and Northern Ireland.
There is also growing support for household contacts to be allowed to leave isolation if they test negative.
Good afternoon and welcome to our live coverage of today's Covid update from Nicola Sturgeon.
The first minister will make a virtual statement to parliament from about 14:00.
She will then take questions from opposition party leaders and MSPs.
It comes as Covid case numbers in Scotland continue to rise sharply.
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