A newborn girl who was bitten on the face by the family dog remains in a Sydney hospital.

The seven-day-old baby was mauled by an Alaskan malamute in the early hours of Monday while her parents slept in their Campbelltown home.

The distraught parents, named in media reports as Aaron and Jessica Graham, woke to the screams of their first-born, who had just been put at the foot of their bed after an early morning feed.

"The father has seen the dog, its head was in the bassinette, and the baby was screaming, and he's taken action from there," Superintendent Wayne Benson told reporters.

Neighbours have spoken glowingly of the parents.

"They are a lovely young couple," neighbour Dennis Pallos told the Seven Network.

"I suppose we all have to be wary of these things - it's just a shock. They are lovely. It's a terrible thing."

The baby girl was rushed to Campbelltown hospital with facial injuries, before later being transferred to Sydney Children's Hospital in Randwick, where she remains in a stable condition.

Police say her condition has improved and investigations into the incident will continue on Tuesday.

The dog has remained locked up at the family home since the early morning attack.

It is believed this was the dog's first attack.

A representative for Campbelltown Council said on Monday if the dog is declared dangerous it will be subject to specific control requirements listed in the Companion Animals Act.

AAP gn/rj