Three people have died after an RFS aerial water tanker crashed in the Snowy Monaro area on Thursday afternoon.

The wreckage was located by search crews and early reports suggest only the plane’s tail section is intact, while the remainder broke up on impact.

UPDATE: Three US firefighters died when an RFS air tanker crashed in NSW on Thursday

Crews say the crash site is surrounded by difficult terrain and “terrible visibility”.

The NSW Rural Fire Service said contact was lost with the C-130 Hercules on Thursday afternoon.

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Witnesses in the area say they saw a “ball of fire” as the aircraft reportedly hit the ground.

A number of aircraft were carrying out a search in Peak View, northeast of Cooma, including a P-8A Poseidon.

Five road ambulances and two rescue helicopters also attended the scene.

The C-130 Hercules Large Air Tanker is the largest aircraft in the RFS fleet with 15,000-litre capacity.