Reports the Federal Government is set to sign off on Sydney's long-awaited second airport at Badgerys Creek have been welcomed by a pro-airport community alliance in the city's west.

Federal cabinet is expected to approve the project and more than $200 million worth of transport links next week, News Corp Australia reported on Wednesday.

A cabinet minute prepared by Infrastructure Minister Warren Truss is believed not to have put a final price tag on the project, which could cost $2.3 billion.

NSW Premier Barry O'Farrell has previously said the issue of a second airport is entirely up to the federal government.

Western Sydney Airport Alliance spokesman David Borger said the federal government appeared to have gone a welcome further step in approving not only the airport but a $250 million transport infrastructure package to connect western Sydney with its new asset.

"I hope that this report will encourage a more co-operative relationship between the two levels of government to support the airport and the thousands of jobs it will generate," he said in a statement.

Connecting an airport at Badgerys Creek to the nearby South West Rail Link and the M7 Motorway will be a bargain basement deal for Sydney, Mr Borger said.

"The people of western Sydney will be the beneficiaries of this investment for decades to come and the airport will have a transformative effect on western Sydney by bringing thousands of jobs closer to home."

Airport alliance members include business, community and union groups including the Sydney and NSW business chambers and Unions NSW.

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