Ethiopian Airlines has signed a deal for the design of a new $6 billion (R112.4 billion) airport described as the biggest in Africa, state media reported.

The new hub will be able to handle 100 million passengers a year once completed in five years, Ethiopian Airlines chief executive Mesfin Tasew was quoted as saying at a press conference on Friday.

He said Ethiopian Airlines had signed a memorandum of understanding (MoU) with Dubai-based consulting company Dar to develop the design for the airport, which will have four runways.

It will be built in Bishoftu, about 40 kilometres southeast of the capital Addis Ababa, and stretch across 35 square kilometres, he said.

"The first phase includes the construction of the airport facility with a capacity of 60 million passengers per year and the completion of phase two of the airport project will grow to handling more than 100 million passengers per year," Mesfin said, according to state-affiliated Fana Broadcasting Corporate.

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