The best way to go about it without changing any core files is to copy the Toolbar.php file located:
/app/code/core/Mage/Catalog/Block/Product/List/Toolbar.php
then create a new directory path (if you haven't created one) under:
/app/code/local/Mage/Catalog/Block/Product/List/Toolbar.php
Now replace the following from line 232:
if ($this->getCurrentOrder()) {
$this->_collection->setOrder($this->getCurrentOrder(), $this->getCurrentDirection());
}
to
if ($this->getCurrentOrder()) {
if(($this->getCurrentOrder())=='position'){ //defines the sort option
//sort by position (ascending) and entity_id (descending)
$this->_collection->addAttributeToSort('position','asc')->addAttributeToSort('entity_id','desc');
} else {
$this->_collection->setOrder($this->getCurrentOrder(),$this->getCurrentDirection());
}
}
Lastly, reindex and refresh cache on your Magento backend and your ready to go.