A pilot and passenger were killed after two helicopters had a mid-air collision in Malaysia.

Shocking footage recorded by residents shows one of the helicopters in a death spiral as it plunges to the ground near a school in Ulu Klang, Selangor state on November 8.

Puteri Nur Elani said she was gathering some leaves for a school project when the incident happened.

She said: "When I looked, I saw two helicopters flying, the blue in front and the red behind. Suddenly the red struck the blue in the back.

"As a result of the collision, the rear section of the blue helicopter snapped off and the red helicopter began stalling.

"Then the blue helicopter plunged, followed by a loud bang. The red helicopter continued with its journey and I believe landed near my school."

One of the helicopters spiralled down and crashed but the other one was able to regain control and make an emergency landing in the school grounds.

Terrified residents called the emergency services who rushed to the crash site to search for survivors.

They found the bodies of former Royal Malaysian Navy officer Mohamed Sabri Baharom, 56, and Mohd Irfan Fikri Mohamed Rawi, 44 among the wreckage. They were both pronounced dead at the scene.

Former Malaysia Airlines group chief executive officer Datuk Ahmad Jauhari, 66, and Tan Chai Eian, 51, were in the helicopter that managed to land safely.

The collision involved two Guimbal Sabri G2 helicopters from the same company whose four crew members were out on a flight training session.

Both aircraft departed from Sultan Abdul Aziz Shah Airport in Kuala Lumpur heading to Genting Sempah until they collided in an area near a school 38kilometres away from the airport.

Ampang Jaya Officer in Charge of Police District Assistant Commander Mohamad Farouk Esha said they launched an immediate investigation into the crash.

He said: "We are investigating the cause of death, while the investigation on the accident and crash will be conducted by the Department of Civil Aviation."