Canberra Airport says its ability to accept flights 24 hours a day makes it the best option for Sydney's second airport.
New South Wales Premier Barry O'Farrell says the best way of dealing with the increasing pressure on Sydney Airport is to build a second airport in Canberra and link the two cities by high speed rail.
A joint federal and NSW taskforce is examining how to deal with projected growth in air traffic and is expected to make its report soon.
Canberra Airport managing director Stephen Byron says any plans to build a new airport closer to Sydney would fail.
"Get a site close to Sydney and spend billions of dollars on a new airport, the reality is that that's going to get knocked back by communities because they complain about airport noise," he said.
"What we have here is an airport that is curfew free."
Joseph Griffith from the ACT Tourism Council agrees Canberra is the best option.
"Our industry has always been very supportive of Canberra being either the overflow or second choice for Sydney Airport," he said.
"I believe there's a very, very good chance of that happening."
ACT Chief Minister Katy Gallagher says she continues to support the proposals, but is sounding a note of caution about the future role of Canberra Airport.
"I'm not sure we need to be tagged as Sydney's second airport city and I think we've been clear about that as well," she said.
"We support ongoing development at the airport but we have to be mindful of the impacts on our city."