A cargo plane with 16 people on board has crashed into a residential area after overshooting an airport runway in Iran.

According to local reports, the Boeing 707 mid-size aircraft, owned by Payam Air, was travelling from Bishkek, Kyrgyztan when it crashed after the pilot mistook Payam International Airport, in the Alborz Province near Tehran, with another airfield.

According to reports only one survivor has been recovered from the charred wreck of a Boeing 707 cargo plane that crashed in Iran this morning. (AAP)

It is understood the cargo plane had technical issues and overshot the runway at Fath Airport. (AAP)

Iran’s aviation organisation spokesman Reza Jafarzadeh confirmed to local media that the aircraft overshot the runway before crashing into a wall and landing in a nearby residential area.

A large cloud of black smoke was seen billowing from the crash site as eight emergency vehicles and a helicopter rushed to the scene.

Local media is reporting that 10 of the plane's crew were killed when the plane hit the ground and burst into flames.

The Boeing 707 crashed through a wall and ploughed into a residential area not far from Fath Airport. (AAP)

Fire crews worked to extinguish flames after a cargo plane crashed near Fath Airport in the city of Karaj, Iran. (AAP)

the victims include one woman and nine men.

The local army released a statement saying one crew member, a flight engineer, was found in the wreckage and taken to Shariati Hospital in a critical condition.

There are reports the 42-year-old plane may have suffered a technical problem moments before it hit the ground and an investigation is underway to determine the cause of the crash.

The plane was travelling from Bishkek in Kyrgyzstan when it crash landed in a residential area near the airport. (AAP)