Sydney Airport has received a notice to consult from the Australian Government, regarding the development and operation of the Western Sydney Airport.

The government has launched a consultation period with the airport under the 2002 Sydney (Kingsford Smith) airport sale agreement, which gives the company a right to refuse to build a second $2.5bn airport at Badgerys Creek in western Sydney.

The airport stated that the right of first refusal had many phases, including a consultative phase and a subsequent contractual phase, which is expected to take up to two years to complete.

"This government is about developing infrastructure for the 21st century that will create new economic opportunities for generations to come."

The government has informed the airport that the first phase of consultation will start on September 30 and will be conducted over nine months.

Sydney Airport CEO Kerrie Mather confirmed the government’s invitation to the airport to participate in the consultation process.

"Since Badgerys Creek was confirmed in April as the site for the Western Sydney Airport, we have been engaged in preliminary discussions with the Australian Department of Infrastructure and Regional Development," said Mather.

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"Together with the department, we have begun to map the considerable work that needs to be addressed during the consultation period."

Mather also added that to supplement the extensive and global experience, the airport has internally selected a team of external experts to assist them to evaluate the opportunity.

There will be a detailed examination of the business case, which would include passenger forecasting, demographics, airport design and operation, planning and commercial development, environmental analysis and funding and financial modelling during this period.

Minister for infrastructure and regional development Warren Truss said that the government was working towards making the airport functional from mid-2020.

"This government is about developing infrastructure for the 21st century that will create new economic opportunities for generations to come," said Truss.