Ambulance Victoria said paramedics were called to a report of a fall about 7.30am.

A man's body was found on Albert St in Preston, in Melbourne's north, a Victoria Police spokesperson said.

"It's believed the man was riding in a hot air balloon at the time of the incident," the spokesperson said.

"Police are speaking to the other occupants in the balloon and witnesses to determine the circumstances surrounding the incident."

The hot air balloon landed safely at Yarra Bend Park in Melbourne's inner north.

Police will prepare a report for the coroner and the death is not being treated as suspicious.

In a statement, the National Commercial Hot-Air Ballooning Industry and the Australian Ballooning Federation gave their condolences to the man's loved ones.

"Hot-air balloon baskets are designed with safety in mind, specifically to prevent passengers from falling out accidentally or from any accidental exit," the statement said.

"Passengers and the pilot are understandably traumatised by this tragedy and the operator is arranging psychological support and counselling for all affected."

Albert St was closed to traffic between Wood St and Murray Rd, according to VicTraffic.

"Please avoid the area where possible and follow the direction of emergency services," VicTraffic said.