Two planes crash mid-air close to Melbourne airport

Two planes have been involved in a crash at the popular recreational flying spot of Mangalore, with fears people may have been killed.

Police and paramedics responded to reports of a light plane crash in the Mangalore area, 120km north of Melbourne, at about 11:30am.

"Police are currently attending in the vicinity of Mangalore following an aircraft incident," said a Victoria Police spokeswoman.

"The exact circumstances surrounding the incident are yet to be confirmed and more information will be provided as soon as it becomes available."

Mangalore has a busy airport, with a major aviation-training facility and pilot academy.

It's unclear whether the incident is at the airport or nearby.

Channel 9 reporter Tony Jones, who was at the scene, said he could see one of the planes and the damage looked serious.

"It doesn't look good, I'm afraid," Mr Jones told Neil Mitchell.

"It has broken up, a number of parts of that plane … have broken free from the actual aircraft."

The condition of the pilot is unknown.

The Country Fire Authority has confirmed a second plane was also involved in the collision.

It was found by emergency crews in Avenel, near Seymour.

All southbound lanes on the Hume Freeway have been closed at Avenel.