A Sydney school teacher has broken down in court as a jury found her not guilty of having a sexual relationship with a male student.

The 30-year-old woman, who can't be named for legal reasons, wept uncontrollably as the verdict was handed down in Downing Centre Local Court on Tuesday afternoon.

A large group of family and friends also cried in the courtroom and one supporter walked out of the court and cheered.

The woman said "thank you" to the jury as they were being dismissed.

The woman had pleaded not guilty to three counts of having sexual intercourse with the teenager who was under her care.

During her trial, which lasted nearly a week, the jury was told that the Catholic school teacher, then aged 22, did not teach the boy, but got to know him after they both attended a weekend outing at Luna Park to celebrate the girls' team reaching the finals.

The former student, now aged 25, said the teacher had picked him up on a side street near his home several times and drove him to a secluded area near a soccer stadium where they engaged in sexual acts.

He told the court that after the teacher began talking about wanting to have children one day he got scared and suggested they should just be friends.

After the meetings ended, there was no more contact between them for the rest of the school year, he said.

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