The plane was flying from Amsterdam to Kuala Lumpur carrying 280 passengers and 15 crew, reports said.
The Boeing passenger liner came down close to town of Shaktarsk in the rebellion-wracked region of Donetsk after disappearing from the radar and teams from the emergency services were trying to reach the scene, an unnamed security source said.
Today's crash comes four months after the Beijing-bound Malaysia Airlines MH 370 disappeared with 239 people including five Indians on board after taking off from Kuala Lumpur on March 8.