Two men and a woman are dead after what is believed to be a mid-air collision between tandem and single skydivers at Mission Beach, south of Cairns.

A local resident said they had fallen onto the lawn of a property on Alexander Drive, about 1.5 kilometres north of the usual landing site.

Queensland police believe the two men who died, aged 34 and 35, worked for the skydiving company.

The woman, aged 54, is believed to be a local who paid for the tandem jump.

A parachute in a tree on the property where three skydivers died in Mission Beach. ( ABC News: Kathy McLeish )

Senior Sergeant Peter Williamson said the investigation was ongoing and they were appealing for witnesses.

"Naturally, any accident involving skydivers is not good for anyone," he said.

"It's a horrific scene, it's an unfortunate scene and there's going to be a lot of families very upset as a result of this."

Police said initial investigations suggested a solo skydiver may have collided with tandem skydivers mid-air with their parachutes "failing to deploy correctly".

The tandem divers crash landed about 200 to 300 metres from the solo skydiving instructor.

Queensland Ambulance Service's Neil Noble said paramedics were called out just after 3:00pm.

"We had a report of a skydiver who had been found in the garden at a residence in Mission Beach," he said.

"Shortly thereafter we received another report of another two skydivers that'd been found close by."

The company which operated the skydive, Skydive Australia, released a statement saying it extended its deepest sympathies to "the individuals and families involved and the broader skydiving community".

"One of the deceased, a highly experienced instructor who had completed thousands of jumps, was completing a solo jump," the statement said.

"The other two were jumping as a tandem pair, a highly experienced instructor and a customer.

"Skydiving operations have been suspended at Mission Beach while the appropriate authorities conduct an extensive investigation."

Police talk to people on the Mission Beach street where three skydivers died. ( ABC News: Kathy McLeish )

Brad Turner from the Australian Parachuting Federation said an investigator from the organisation was already in Mission Beach assisting.

"At what stage they collided, we don't know," he said.

Cassowary Coast Mayor John Kremastos said the news was devastating.

"We are very, very saddened to hear about this news and right now I feel quite gutted actually," he said.

"It's horrible news for the families and the thoughts of the council and the residents go to all those concerned and the families of those that have been killed.

"Three people in one accident is very, very sad."

Located halfway between Cairns and Townsville, Mission Beach attracts backpackers making their way down the Queensland coast, and multiple companies offer skydiving in the area.