The report says the crash occurred as the plane headed for the wrong airport as it made its approach for landing.
A flight engineer was the only person on board to survive, Mojtaba Khaledi, a spokesman for Iran's Emergency Information Centre, told the news agency.
The plane with nine people on board crashed near Fath airport, west of the capital, Tehran, the semi-official Fars news agency reported. Authorities did not immediately offer a reason for the mistake, though they said the Iranian crew had declared an emergency prior to landing.
Images carried by Iran's state-run media showed the burned-out tail of the plane sticking out, surrounded by charred homes. Earlier on Monday, a spokesman for Iran's civil aviation told had told state TV that the plane belonged to Kyrgyzstan, while a spokeswoman for Kyrgyzstan's Manas airport said the plane belonged to Iran's Payam Air. Since 2016, Iran has been importing meat from Kyrgyzstan, usually via Saha.
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It is not clear who owned the plane.
The big jet, operated by the Iranian Air Force, exploded into flames after crashing into houses near the capital of Tehran.
At least seven people have died in a cargo plane crash near the Iranian capital, Tehran, media have reported. The air force does operate Boeing 707s.