In the paper, the problem of forming and maintaining the small satellites formation in the near-earth projected circular orbits is considered. The satellite formation reconfiguration and formation-keeping control laws are proposed by employing the passivity-based output feedback control. For the complete nonlinear and time-dependent dynamics of the relative motion of a pair of satellites in elliptical orbits, new combined control algorithms, including a consensus protocol, are proposed and analyzed. A comparison of the control modes using the passivity-based output feedback control and the proportional-differential controller with and without the consensus algorithm is given. On the basis of the passification method, the algorithm is obtained ensuring the stable motion of the slave satellite relative to the orbit of the master satellite. To improve the accuracy of the satellites’ positioning, a consensus protocol based on measurements of the relative positions of the satellites is proposed and studied. Computer simulations of the proposed algorithms for options to construct formations are provided for two projected circular orbits of 8 satellites, demonstrating the efficiency of the proposed control schemes. It is shown that the resulting passivity-based output feedback control provides better accuracy than the PD controller. It is also shown that the use of the consensus protocol further increases the positioning accuracy of the satellite constellation.