Melbourne - In the latest UFO riddle to grip Australia, a flaming object has been spotted crashing into a mountain in central Queensland.

The spectacle was initially treated as a possible plane crash but is now believed to be a meteor or space junk falling to earth.

Police said the Australian Search and Rescue Authority received no mayday or distress calls from aircraft.

The AGL Action Rescue helicopter has been tasked to search the mountainous area at Takilberan Creek northwest of Gin Gin.

Property owner Hazel Marlin told ABC Radio the mountain was covered in smoke.

A spokesman for the AGL Action Rescue Helicopter said a crew had not been able to identify what caused the fire.

Police are also conducting a ground search of the thickly wooded area.

"They've conducted ground searches as well as an aerial search," the Courier Mail quoted him as saying.

"There is a fire up there but it could have been caused by a space junk or meteor strike, or even a lightning strike," he added.

A spokeswoman for UFO Research Queensland said that they had received no reports about the incident. (ANI)