The two planes, a Piper Semionle twin engine registered to Moorabbin Aviation Services and a Beechcraft Travel Air D95A registered to the Peninsula Aero Club, collided mid-air near the Mangalore Airport on Wednesday morning.
It is understood the Moorabbin Aviation Services aircraft took off from Mangalore Airport just after 11.20am on Wednesday, and had been in the air for around three or four minutes prior to the collision.
Investigators believe the two occupants of the aircraft were a 27-year-old woman from Melbourne West and a 79-year-old man from Maiden Gully.
Emergency services later discovered the aircraft on property belonging to the Thales Australia ammunition facility on Seymour-Avenel Rd in Mangalore.
The Peninsula Aero Club aircraft had taken off earlier that morning from Tyabb, a town in Victoria to the east of Mornington.
Police confirmed the aircraft had a 30-year-old man from Cheltenham and a 47-year-old man from Seaford on board.
It is understood these two victims were Peninsula Aero Club chief flying instructor Pete Phillips and experienced airman Ido Segev who was seated in the cockpit for a training flight.
Following the collision friends of Mr Segev, who had worked at Foxbat Australia for around three years, took to Facebook to pay tribute to the pilot who was described as "an enthusiastic and very skilled pilot at several levels".
"We were incredibly saddened to learn of the accident, and especially the loss of Ido Segev. Ido was a good friend of Australian Flying and always showed an eagerness to get involved," Australian Flying said in a post on their Facebook page.
"Ido loved his life in aviation and it showed in everything he did ... (he was) a multi-talented pilot."
On the Hobby Guy Facbeook page, Mr Segev was described as "one of a kind, a modest and loved young man, professional and extremely talented with hands of gold".
"He was a world champion RC pilot, a passionate and promising pilot with a bright future ahead of him," the post said.
Mr Phillips was described by colleagues as a "real mentor".
"(Peter) gave me words of inspiration when everyone else said give up, and was absolutely instrumental in my achieving all that I did in Aviation," a Peninsula Aero Club member in training said on Facebook.
The Peninsula Aero Club aircraft took off from the Tyabb Airport at around 10.55am on Wednesday before colliding with the other plane mid-air and landing on a private property on Lambing Gully Rd, Avenel.
It is understood the Peninsula Aero Club put a temporary closure on flying operations at the flying school until further notice