US military helicopter V-22 Osprey, carrying about 20 Marines, crashed during the Predators Run exercises off the coast of the northern Australian city of Darwin, Sky News Australia reported on Sunday, citing sources.
The helicopter crash occurred at 01:30 GMT near Melville Island, the broadcaster reported, adding that the incident may have killed people, as some personnel remain missing.
The military drills, which involve military from the United States, Australia, Indonesia, the Philippines and Timor-Leste, will be suspended due to the crash, the report stated.
A rescue operation is underway.
According to the Australian Broadcasting Corporation (ABC), one person was in critical condition, two were stable and there were no reports of fatalities.
It said that no Australian was involved in the drill.