The plane came down in an abandoned produce market in the Hasaba district near the Yemeni capital after experiencing a technical error, the official said.
"The plane tried to land in an empty space in Hasaba, but because of a technical problem it crashed and ten of the crew died," the official told Reuters news agency, saying the pilot was one of the ten people killed.
"An Antonov crashed following a technical problem. The pilot and nine other people were killed," a statement on the defence ministry's website 26sep.net said, citing a military source.
Ambulances raced to the scene where crowds gathered.
Witnesses said that the Antonov plane was completely burnt out and that thick black smoke surrounded the area.
In October last year, a Yemeni military plane crash-landed at an air base in the south of the country killing nine passengers, including eight Syrian engineers.