The West Metro to Parramatta has been announced as the preferred next metro line, with stations confirmed for Parramatta, Olympic Park, White Bay and Sydney CBD. Other stations are to be considered but have not been mentioned.
For the announced scope (ie: terminating in Parramatta), the biggest question in my opinion is how to fill up the announced 40K/hr capacity without hitting bottlenecks elsewhere in the "old" rail system. To see how big 40K is, have a look at the left bar chart below (source = TfNSW).