A yet-to-be tabled report commissioned by the federal government is set to recommend a second airport be developed in Sydney's greater west, possibly at Badgerys Creek or the Nepean area, News Ltd has reported.

Managing director of Canberra Airport Stephen Byron said he never expected Canberra to be named as Sydney's second airport. He also suspected there would never be a second Sydney airport because of the community's opposition to aircraft noise. ''We believe we can play a greater role as an overflow airport for Sydney, not a second airport, if they build a train,'' Mr Byron said.

''We strongly think one of our overflow roles is freight and that our role is of the 24 hour capability.''

The report will also call for an increase in aircraft movements and the lifting of the 11pm to 6am curfew at Sydney Airport.

But Mr O'Farrell ruled out supporting a second airport in the Sydney basin. ''If you want to have greater flights into this city, do so as happens overseas, by using an adjacent airport and link the two by fast rail,'' he said yesterday.

''This is an endless debate that comes out from time to time. The fact is that no other part of Sydney is going to be contaminated by the sort of noise that is connected with an airport.''

Federal Transport Minister Anthony Albanese reiterated his belief yesterday that Sydney needs a second airport but said it would not be at Badgerys Creek. AAP