The Red Arrows are now training for the upcoming display season at the RAF base in North Wales where Prince William served as a helicopter pilot in the RAF Search and Rescue Team.
The aircraft was reportedly attempting landing, when it crashed and went up in flames at around 1 pm in the afternoon, local time.
The Royal Air Force confirmed there had been an incident involving a Hawk jet, the type used by the Red Arrows.
"The engineer's family have been informed and have asked for a 24-hour period of grace before further details are released".
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At RAF Valley on the island of Anglesey, wreckage from the jet could be seen close to the runway.
The two crew members are believed to have ejected from the plane and their condition is not known.
A spokesman said they sent an emergency ambulance to the scene and Wales Air Ambulance is also in attendance.
A Red Arrows jet has crashed after an incident at RAF Valley in north Wales, the Ministry of Defence has said.
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A sign at the entrance to RAF Valley where a Red Arrows jet crashed following an incident.
This is a breaking news story and will be updated.
It is understood the Red Arrows aircrew had been at RAF Valley for routine Hawk simulator training - something that takes place once a month.
The 52-year-old said: "I did not see the crash but I heard a very loud noise".
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The pilot survived the disaster at a base in Anglesey amid reports that both he and the engineer had ejected from the Hawk aircraft.