Russell Balding has announced his departure as CEO of Sydney Airport in early 2011 at the conclusion of his employment contract.

Appointed CEO in 2006, he has overseen a period of substantial achievement and growth at the Airport.

"Russell has demonstrated the strength of his organisational leadership by successfully completing a host of flagship projects including the $100 million runway safety area and the $128 million program of aviation infrastructure upgrades to secure for Sydney all the benefits of the A380," Sydney Airport Chairman Max Moore-Wilton said.

"There have also been environmental achievements like the recycled water plant and customer service initiatives such as the introduction of 15 minutes free parking at the International Terminal.

"In 2006 Sydney Airport had less than 30 million passengers. This year it is tracking towards more than 35 million. Securing this and future growth through the Master Plan approved in 2009 is another of Russell's important achievements.

Mr Balding said that it was not an easy decision to have reached, but was confident that now was the right time to move on.

"Sydney Airport is a major asset for Sydney and the five years I've spent as CEO have been wonderful. I've enjoyed the tremendous challenges of the job and want to thank all of Sydney Airport's staff for their contribution to making Sydney Airport such a success."

The Board of Sydney Airport is now searching for Mr Balding's replacement.