“The possible mid-air collision between the two aircraft took place when they were flying a simulated combat mission at very high speeds. More details would come out in the court of inquiry", news agency ANI quoted people in the defences who are aware of the situation.
Officials said the two pilots of the Sukhoi-30MKI aircraft ejected safely while the pilot of the Mirage-2000 lost his life.
"Two fighter aircraft of IAF were involved in an accident near Gwalior today morning," the IAF said in a statement.
It said the aircraft were on a routine operational flying training mission.
"One of the three pilots involved, sustained fatal injuries. An inquiry has been ordered to determine the cause of the accident," the IAF said.
Defence Ministry sources said Defence Minister Rajnath Singh was briefed by Chief of Air Staff Air Chief Marshal V R Chaudhari on the crash of two IAF aircraft.
Singh is monitoring the developments closely, the sources said.
Morena District Collector Ankit Asthana said debris of both aircraft fell in the Pahargarh area of the district. Some debris also fell in the Bharatpur area in Rajasthan, which borders Madhya Pradesh, he added.
The two fighter jets had flown from the Gwalior airport, which also serves as an IAF base, the official said.
Two pilots survived the crash, Asthana said, adding that body parts of another were found in the Pahargarh area.
Defence Ministry sources said Defence Minister Rajnath Singh was briefed by Chief of Air Staff Air Chief Marshal V R Chaudhari on the crash of two IAF aircraft.
Madhya Pradesh Chief Minister Shivraj Singh Chouhan in a tweet said, "The news of the crash of Sukhoi-30 and Mirage-2000 aircraft of the Air Force near Kolaras in Morena is very sad."
"I have instructed the local administration to cooperate with the Air Force in quick rescue and relief work. I pray to God that the pilots of the planes are safe," he said.
More details regarding this accident is awaited.