The military aircraft went down near an airport at Boufarik — less than 20 miles from the capital Algiers.
It had been transporting dozens of troops and equipment when it crashed just after 8am local time.
Footage captured by witnesses shows a huge plume of black smoke billowing from an area near the runway.
As many as 14 ambulances and ten fire engines were dispatched to the horror blaze and dozens of bodies were pulled from the wreckage, according to local reports.
All roads around the airport were closed to help emergency services carry out a desperate rescue mission.
But an Algerian military source told local news broadcaster Al-Hadath that there are no survivors.
A military plane has crashed shortly after taking off from the Boufarik base in Algeria, Al Jazeera with reference to the local media reports.
The plane, a Ilyushin Il-78, was carrying dozens of military troops, according to the reports.
An image posted on an Algerian website showed thick smoke billowing from the site of the crash.
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