AN ABORIGINAL Dreaming story about a star crashing to earth with a noise like thunder has led to the discovery of an ancient meteorite crater in central Australia.

A Sydney astronomer, Duane Hamacher, found the bowl-shaped crater in Palm Valley, about 130 kilometres south-west of Alice Springs, by searching on Google Earth.

Astrophysicist Tui Britton in a meteorite impact crater discovered in Palm Valley in Northern Territory.

He was inspired to look there after learning of traditional stories told by the local Arrernte people about a star that had fallen into a waterhole called Puka in the valley.

Mr Hamacher, a PhD candidate at Macquarie University, said that reality matching the Dreaming story could be a case of pure chance. ''But if so, it's an incredible coincidence,'' he said.