SYDNEY - TWO people were killed when two aircraft collided over Sydney and one of the planes slammed into a house, officials said on Thursday.

The aircraft that hit the house burst into flames, while the other plane landed safely at Bankstown airport.

'Two planes have collided. One has landed safely and the other is believed to have crashed into a house in Liverpool,' said Fire Brigade Superintendent Craig Brierley.

'The plane (that hit the house) is on fire.'

The national AAP news agency reported that two people were confirmed dead, but it was not immediately clear whether anybody on the ground was killed as the aircraft crashed. -- AFP