The Nepean district in western Sydney has been tipped as a top location for a second international airport by a government taskforce.
The Nepean option covers Luddenham, Wallacia and Greendale and is "streets ahead" of other locations, News Limited reports.
The joint study by the federal and state governments into aviation capacity in the Sydney region suggested Kingsford Smith Airport was nearing capacity.
To meet future air travel needs, the taskforce looked at other options, including expanding the airport facilities at Richmond and Bankstown, which is currently only used by non-passenger aircraft.
It suggested the airspaces could be used as a "hub" for regional flights by Qantas Jetlink and Rex.