A Ukrainian cargo plane that reportedly had eight people on board was engulfed in flames before it crashed near the town of Kavala in northern Greece.

According to foreign media, Telegraph reports, the Antonov An-12 plane, owned by Meridian, caught fire while flying from Serbia to Jordan with 'dangerous materials' believed to be explosives on board.

The pilot had requested an emergency landing at nearby Kavala airport due to an engine problem, but the plane's signal was lost, the Greek aviation authority said.

Meanwhile, footage showed the burning plane descending rapidly before hitting the ground 40 kilometers west of the airport, causing a series of huge explosions that could be heard near the city.

Eyewitnesses said the Antonov An-12 was on fire and that they heard explosions, the Athens News Agency reported.

A local from the mountainous region, Giorgos Archontopoulos, told state television ERT that he felt something was wrong as soon as he heard the sound of the plane's engine.

"At 22:45 I was surprised by the sound of the plane's engine," he said.

"I went outside and saw the engine on fire."

Locals, who reported seeing a fireball and a plume of smoke, and Greek media believe the plane was carrying explosives.

Filippos Anastasiadis, mayor of the nearby town of Paggaio, told Open TV: "The plane crashed about two kilometers away from a residential area."

A total of 15 fire engines and seven engines were deployed to tackle the blaze which broke out after the collision with more blast crews.

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