It is believed an Australian pilot has died in Germany after the blimp airship he was flying in crashed and caught fire.

The Lightship Europe Limited A60 airship was returning from an appearance at a local music festival on Sunday.

Police say four people, including a 42-year-old pilot were on board. Website airships.net has named the pilot as Australian Mike Nerandzic.

The blimp caught fire while landing at an airport in Reichelsheim. According to reports, three passengers jumped from the gondola and escaped unharmed.

The airship then ascended before crashing in a nearby field, killing the pilot.

The cause of the crash was not immediately clear but an investigation was underway.

In a statement, Lightship Europe Limited has confirmed the crash but not the identity of the deceased.

"One member of the flight crew suffered fatal injuries. There were no injuries to passengers or ground crew. As is customary in incidents involving aircraft, the aviation and local authorities have initiated an investigation and it would be premature for Goodyear or Lightship Europe Limited to speculate on causes and findings at this time," the statement said.