"8 minutes after liftoff of Vega mission VV17, following the first ignition of the engine of the Avum upper stage, a deviation of trajectory was identified, entailing the loss of the mission", Arianespace said in a statement.
The company added that data analysis is underway to determine the cause of the mission's failure.
"Arianespace's seventh launch of 2020 is now underway following tonight's #Vega liftoff from the Spaceport in French Guiana! Spain's #SEOSAT-Ingenio and #TARANIS of France are en route to Sun-synchronous orbit!", Arianespace CEO Stephane Israel said on Twitter.
Arianespace earlier announced the successful liftoff of the Vega rocket with satellites for Spain and France.
The two satellites were supposed to be placed into Sun-synchronous orbits at slightly different orbital inclinations and altitudes.
In October, a space industry source said that two US satellites carried by a Vega rocket failed to reach orbit following their September launch from the Kourou space centre. According to the source, the satellites did not leave the launch containers that were installed on the fourth stage of the Vega rocket.