Police observed a Honda CRX coupe and a Mazda RX7 speeding along General Holmes Drive in Mascot about 10.25pm (AEDT) yesterday.
Officers alleged the men entered the airport tunnel section of the road and then engaged in a street race.
They reached speeds of up to 170km/h in the 70km/h zone before police stopped the vehicles.
The men, aged 22 and 28, were issued with court notices for the offences of street racing, dangerous driving and exceeding the speed limit by more than 45km/h.
Their licences were suspended on the spot and their vehicles were confiscated.
Both are due to appear in Waverley Local Court on March 18.
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