Reports suggest bird strikes were the cause of an engine fire that forced a Queenstown-Melbourne flight to make an emergency landing in Invercargill this evening.

Flames were seen coming from the Virgin Australia flight - a Boeing 737 with 73 people on board - as it took off over the Shotover Delta at 6pm.

Residents in Shotover Country and Lake Hayes Estate also reported hearing loud bangs and a droning, churning sound, similar to the sound of someone doing car burnouts. The noise prompted dozens of people out on to the streets of the subdivisions, near the flight path.

X user (Twitter) @DrawyahYT posted from onboard the VA148 after it landed.

"Can confirm that the BOEING had no fault on its own part, rather several bird strikes as we departed from Queenstown," the post reads.

"There were a few announcements made. Pilot confirmed us hitting several birds on the way out. We're now sitting on the Invercargill runway as the fire crews check for damage."

Virgin Australia Chief Operations Officer Stuart Aggs confirmed the diversion was due to "a possible bird strike on take-off". 

"The aircraft has been met by emergency services at Invercargill Airport. The safety of our guests and crew is our highest priority."

As the American narrow-body airliner continued to ascend during its take off, turning towards Lake Hayes after the northern end of The Remarkables, the droning noise and the bangs stopped and the flames appeared to have been extinguished.

The aircraft then circled Queenstown after the incident and flew off towards Invercargill, where there is a longer runway.

The flight was met by three FENZ fire units and the airport unit, along with a water tanker and command unit.

Queenstown Airport, Fire and Emergency southern shift manager Lyn Crosson told Stuff the engine had been shut down following a fire. 

Airport spokesperson Sara Irvine confirmed the Virgin Australia flight VA148 "experienced an issue just after take-off" but had landed safely in Invercargill.

There are media reports that two people onboard were injured.