UPDATE 4.30PM: The climber was successfully retrieved from the cliff about 3pm on Monday and flown to Westmead Hospital with compound fractures in his wrist and both legs.
Blue Mountains Police Inspector Peter Balatincz said two Blue Mountains Police Rescue operators and two ambulance special operations paramedics abseiled down the cliff to the Blue Mountains climber in his 50s and stayed with him in a cave near the cliff face - about 100m from the valley floor - overnight.
They had hoped to bring a helicopter in at first light, but clouds and mist had made the rescue difficult.
The rescuers lowered the climber down the cliff using a hauley system on Monday, where he was taken by helicopter to Westmead Hospital.
A cliff rescue was continuing on Monday morning to retrieve a male climber at Point Pilcher Lookout, near Medlow Bath.
The local climber, believed to be aged 57, is stuck on a cliff ledge, 60 metres from the top.
The rescue operation was suspended due to low light on Sunday night, with the injured man and one of his companions sheltering in a cave on the cliff face with rescue personnel overnight.
It is expected the man will be lowered to the valley floor on Monday, before a helicopter extracts him.
On Sunday, a helicopter winched help down to the climber. News reports said the climber is believed to have fallen - with a call out at 4pm for help. He is believed to have a fractured leg and arm and is sitting on a cliff ledge with a thermal blanket around him. The awkward rescue was expected to take until midnight. Two others who were climbing with him are safe.
Those on the scene say police and ambulance rescuers have battled with rain and fog and the generally dangerous terrain. They will try to winch him to safety in the next few hours.
Photos: Top Notch Video