Details of the plans to build the new airport will be announced in the federal budget next week.
The NSW Government has welcomed the commitment as a major jobs and infrastructure boost for the region.
Premier Gladys Berejiklian said the NSW Government was “investing hundreds of millions of dollars in projects around the precinct already and will do all we can to make sure it is built as quickly as possible.”
Minister for Western Sydney Stuart Ayres said, "This airport will give Western Sydney its first true international gateway, making it easier to export local goods and services to world markets and bringing tourists directly to regional attractions."
The Federal Government’s announcement follows the decision by Sydney Airport Corporation not to take on the project.
Image: artist impression of what stage 1 of Western Sydney Airport could look like.