Some 200 people were on board, most of them military personnel, local news report, showed images of the burning wreckage.
The plane reportedly went down near Boufarik airport in Blida Province, around 18 miles from the capital Algiers.
The Algerie Presse service agency said the Iliouchine-type plane was headed for Bechar in south-western Algeria.
Emergency services have been dispatched to the site of the crash, and no death toll was immediately available.
Television footage showed black smoke billowing near a motorway and a crowd of security officials and others standing in a field next to the crash site.
The tail fin of a plane could be seen above olive trees, with smoke and flames rising from the wreckage.
Boufarik is located in northern Algeria, near the Mediterranean sea, some 20 miles from the capital, Algiers.