"Police can confirm two people have died following the light aircraft crash in Masterton this morning", the police said in the statement.
The planes caught fire and fell fromt he sky after the collision, The New Zealand Herald reported.
Causes of the incident remain unknown. Eyewitnesses say that the accident occurred despite fine weather conditions.
The Civil Aviation Authority will reportedly send a team to investigate the fatal collision. The Transport Accident Investigation Commission is also going to join the probe.