Lobbyists have welcomed a media report that Prime Minister Tony Abbott has indicated a second Sydney airport at Badgerys Creek will be given the green light next year.
The Daily Telegraph reported on Saturday that Mr Abbott has "all but confirmed" federal government approval for the second airport after more than 30 years.
Mr Abbott said if built, the airport project would be supported by upgrades to road, rail and local infrastructure in western Sydney.
The Western Sydney Airport Alliance, which has long lobbied for the second airport, said the prime minister's statements were welcome news for the region.
"Western Sydney faces a 500,000 jobs deficit by 2050 if governments do not undertake large, job-generating infrastructure projects in Western Sydney such as an airport at Badgerys Creek," spokesman David Borger said in a statement.
"Western Sydney Airport is no longer a question of where, it's a questions of how it will operate and when it will be open," Mr Borger said.
Mr Borger said he hoped the news of possible federal funding for the project would encourage the state government to be more supportive.
Premier Barry O'Farrell has previously said the issue of a second airport is entirely up to the federal government.
Mr Abbott reportedly said a final decision on the project will be handed down early in 2014.
