Federal Transport Minister Mark Vaile has rejected plans for a retail centre at Sydney Airport after considering concerns about safety and traffic.

The plan included a 48,000 square metre outlet centre, bulky goods centre and discount store, 2000 square metres of office space, commercial buildings and 2412 parking spaces in the south-east precinct of Sydney Airport.

Mr Vaile said his decision followed consideration of concerns raised by the aviation watchdog about the safety of the public on the proposed site and the safety of plane movements.