Flames were seen coming out the back of a Boeing 737 that departed from Queenstown this evening (June 17).

Virgin Australia's chief operations officer Stuart Aggs said the flight had diverted to Invercargill Airport and landed safely following a possible bird strike on take-off.

"The aircraft has been met by emergency services at Invercargill Airport," he said.

"The safety of our guests and crew is our highest priority."

Queenstown Airport said in a statement that Virgin Australia flight VA148 departed Queenstown Airport at 5.59pm, bound for Melbourne.

"It experienced an issue just after take-off and has been diverted to Invercargill Airport."

Queenstown Airport confirmed around 7pm the plane had landed safely in Invercargill.

Members of the public were on the streets filming the incident as the plane flew overhead.

A Queenstown man described hearing what he thought was a car back-firing before seeing the plane, flames shooting from the back as it passed overhead.

Brayden told RNZ most of his street in Shotover Country was out filming the plane as it passed by.

"You don't really know what to do in that situation. Feel a little bit helpless and sorry for everyone who was on board. Sort of brought the whole street out, basically. Everyone was pretty scared and worried about what was going on."

The plane was a Boeing 737-8FE, according to flight trackers.