The report says the crash occurred as the plane headed for the wrong airport as it made its approach for landing.
A flight engineer survived and was taken to hospital, the army said in a statement carried by the semi-official Fars news agency.
A military cargo plane crashed near the Iranian capital Tehran, the army said on Monday, with local media reporting at least 10 people onboard. "It exited the runway during the landing and caught fire after hitting the wall at the end of the runway", the army.
A spokesman for Iran's civil aviation told state TV earlier that the plane - which was reportedly carrying meat - belongs to Kyrgyzstan.
The plane's engines and wheels are spread across the crash site and images from inside the plane's hull show it is completely charred.
"We don't have clear information about the details of the crash", said the head of Iran's emergency department, Pirhossein Kolivand.
Iran's air force said in a statement that the fate of the crew, including their possible 'martyrdom, ' is under investigation.
Iranians often use the word "martyrdom" for those who die in war or national service.
Saha Airlines operated one of the world's last commercial flights of the Boeing 707, which was first manufactured in 1958 and helped usher in the jet age.