A study released by Transport Canada is reviving the idea of an airport in Pickering, east of Toronto.

The study concludes the Golden Horseshoe area will need a new airport in the next decade or two, and an ideal location would be Pickering.

The report recommends the federal government should hang onto lands it acquired in 1972 and use it for a new airport.

Residents who live near the proposed site in north Pickering have fought plans for an airport for years over concerns about noise, pollution and a decline in property values.

Others who favour building the airport say it would bring much-needed jobs and money to the area.

The study looked at the capacity of airports in the area and what the needs will be for passenger, cargo and recreational traffic over the next 25 years.

It determined that an additional airport will be required between 2027 and 2037. But the project will depend on economic factors, the development of existing airports and population growth.

The federal government says it will prepare a plan for the Pickering lands in the next few months.

"The Pickering lands represent a unique economic and environmental opportunity to help transform a key area of the GTA through job creation, economic activity and environmental stewardship," said Finance Minister Jim Flaherty.

"This brings us one step closer to a resolution on this issue."