The Taban Airlines plane crashed at 9.18 a.m, Xinhua reported.
Failure in one of the plane's engines caused the plane to crash on the northern side of Tehran-Karaj highway, Fars news agency quoted Mohammad Ilkhani, the head of Iran Airports Company, as saying.
Iran has seen several air disasters involving both civil and military aircraft in recent years.
In January 2011, an air crash near the airport of the northwestern Urmia city killed 77 people including four foreigners.
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