The aircraft, which was flying from Amsterdam to Kuala Lumpur, was travelling at an altitude of 10,000 metres when it was shot down on Thursday, Russia’s Interfax reported.
An adviser to the Ukrainian interior ministry told the news agency the Boeing 777 was brought down by a Buk ground-to-air missile.
Ukraine’s President Petro Poroshenko denied his armed forces were involved in the downing of the airliner.
“Armed Forces of Ukraine did not take action against any airborne targets,” Poroshenko said.
Malaysian Airlines confirmed it had lost contact with flight MH17 from Amsterdam, saying the aircraft was carrying 280 passengers and 15 crew.
None are believed to have survived the crash.