The paper presents a new adaptive output feedback satellite formation control system for satellites with uncertain relative dynamics. The dynamics of the follower satellite, relative to the leader spacecraft which is moving in an elliptic orbit, include disturbance forces and parameter uncertainty. It is assumed that only the relative position of the follower satellite is available for feedback. The objective is to design a controller for the tracking of reference relative position trajectories. An adaptive control system is designed which includes a high-gain observer to provide the estimates of the lumped unknown and uncertain functions, and the relative velocity of the follower satellite. Compared to existing adaptive satellite formation controllers, in which controller parameters are tuned, here the estimated function of the control law provides adaptivity. The control system accomplishes semiglobal stability in the closed-loop system, and the control law recovers the performance of a feedback linearizing control system after a short transient period. Simulation results are presented which show that the designed control system accomplishes precise formation control, despite the presence of disturbance forces and parameter uncertainty.