A pilot has been killed after a fiery crash-landing at a suburban street in Melbourne's south.

The plane was torn to shreds when it took out power lines and part of a residential fence in Mordialloc, before it was engulfed in flames and landed in the middle of Scarlet St just after 5pm, news.com.au reported.

Victoria Police spokeswoman Belinda Batty confirmed one person was on board and had died at the scene.

An aerial image from Channel Ten.
An aerial image from Channel Ten.

The crash site is less than 1km from the runway at Moorabbin Airport, and 25km south of Melbourne CBD.

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Motorists have been urged to avoid the area, with police directing traffic around Warren Rd, Lower Dandenong Rd and Scarlet St.

Police will prepare a report for the coroner, and the exact cause of the crash will be investigated by Australian Transport Safety Bureau.

Melbourne was the scene of another shocking fatal plane crash last year, when a chartered plane flying to King Island, Tasmania, ploughed into the roof of the Essendon DFO on February 21. The pilot and four American golfers were killed.

A man was also killed in a light plane crash at Clyde North in Melbourne's southeast after it crashed in a paddock last August.

The plane crashed onto the suburban street. Photo / Channel 7
The plane crashed onto the suburban street. Photo / Channel 7

And a Piper Aircraft departing from Moorabbin Airport smashed into waters off the Bellarine Peninsula in 2016, killing all four people on board on January 29.