Two light planes have collided in mid-air above Victoria’s Port Phillip Bay near Melbourne, with one plunging into the water.

Rescue teams are scouring water off The Esplanade on the coast of Mount Martha, 50 kilometres south-east of Melbourne, after receiving reports of the crash before 1.45pm.

There are reports two people were on board the plane which crashed.

It’s understood the other aircraft landed safely at Essendon airfield.

The Australian Maritime Safety Authority confirmed search teams have found wreckage in the area.

AMSA, Victorian Water Police and volunteer marine rescue units are overseeing the search.

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