Two Australian tourists have died and seven others are injured, after a van collided with a milk tanker in New Zealand’s Bay of Plenty.

The crash happened on State Highway 5 near Reporoa on Friday afternoon.

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The van carrying two adults and seven teenagers from Queensland, Australia was travelling toward Rotoroa when it collided with the milk tanker travelling in the other direction.

The 60-year-old male driver of the van and a male teenager died at the scene.

A 16-year-old boy was flown to Waikato Hospital in a critical condition and six other passengers were taken to Rotorua Hospital.

A female in her 40s is in a serious but stable condition and five teenagers are in a stable condition.

Police said the immediate families in Australia have been contacted.

The 60-year-old driver was taken to Rotoroa Hospital and has since been discharged.

Dairy co-operative Fonterra confirmed one of its milk tankers was involved.

The company extended sympathies to the families of the victims.