Spanish agency Antena3Noticias claims the pilot was killed in the crash after earlier reports suggested the pilot ejected shortly before the plane slammed into water near La Manga. Search and rescue crews were scrambled to the incident, with crews joining from the sea and air ranks.
The C-101 plane was part of the General Air Academy of the Spanish Air Force and was conducting a training flight before plummeting to the surface.
Mayor of San Javier, Jose Miguel Luengo confirmed the plane had hit the sea just before 9.40am this morning.
Emergency service crews have reported more than 100 calls from witnesses.
A full investigation as to the cause of the crash is underway.
Witnesses have said the plane was manoeuvring, before trying to climb too late and hitting the sea.
The incident happened just 4km from La Manga’s beachfront and was captured on camera by horrified tourists.
Additional reporting by Rita Sobot