Under the plans, the 90 acre site, stretching from south east of the passenger terminal to nearly as far as Gogar roundabout, would have offices, industrial buildings and homes.

According to the airport, the crosswind runway is rarely used due to improvements in aircraft technology.

Gordon Dewar, chief executive officer of Edinburgh Airport, said: “We have long believed that the land around Edinburgh Airport is a valuable strategic asset, from which local communities and the economy should benefit.

“This venture will accelerate that process and we look forward to working with John Watson and his team, and the Scottish Government and City of Edinburgh Council, to promote opportunities to put the land to good use.”

A sister company is being established to work in partnership with the airport to promote the site, with a specific focus on sustainable energy provision across the entire airport site.

An independent board of directors will be appointed to lead the project.

John Watson, chief executive of the new development company and a former chief commercial officer of the airport, said: “There is a really great opportunity in the west of Edinburgh, to build infrastructure from which future generations benefit.

“We will be investing significantly in the land opened up by the closure of the second runway and will work with other developers in the area to promote the wider opportunity we believe exists.”

Construction could start next year if planning permission is approved.