Close-proximity (10-150 m) formation flying using low cost, small satellites is an emerging field. In such missions, control of satellite formations is a challenging problem and requires robust on-board control systems. This paper describes a modified approach to designing Sliding Mode Control (SMC) for satellite formation and reconfiguration missions, in deep space with external disturbances. Based on this dynamic model, a new approach for implementing path planning of satellites using Artificial Potential Field (APF) method is presented in this paper. This paper discusses stability of the sliding surfaces designed using gradient of the potential function for the closed loop system. The stability analysis is demonstrated by presenting a scenario in which six satellites aggregates to form an octahedron formation and subsequently reconfigure to a hexagon formation. This paper thus presents further progress in the state of-the-art of path planning and control for the framework of satellite formation and reconfiguration missions. © 2012 IEEE.