A man has died after falling from a hot air balloon in Preston, Melbourne at approximately 7:30am on Monday.

The man's body was found on Albert St following reports of a loud bang heard by a neighbor.

Emergency services responded, and although the balloon landed safely at Yarra Bend Park, police are conducting interviews with occupants and witnesses.

Albert St is closed to traffic from Wood Street to Murray Road due to the incident and resulting fallen power lines, with local authorities advising the public to avoid the area.

Investigations into the cause of the accident are underway, and a report is being prepared for the Coroner.