The rescue teams are still searching for survivors and have transferred bodies of the victims to hospitals in Cairo by military planes, the source said.
Most of the people on board are probably dead, a police officer at the scene told Xinhua by phone on condition of anonymity.
The Airbus A-321 which was operated by Russian airline Kogalymavia and carried 217 Russian passengers along with seven crew members crashed in the Sinai Peninsula shortly after it took off from the Red Sea Resort Sharm el-Sheikh early Saturday.
The plane took off at 5:51 a.m. (0351 GMT) and disappeared from radar after 23 minutes, according to a statement released by Egypt s prime ministers office.
Military helicopters have located the crash site in the Hassana district in central Sinai, a mountainous area 35 km south of Al Arish city.
Egyptian Prime Minister Sherif Ismail was heading to the crash site with several cabinet ministers, the tourism ministry said.
The state-run Ahram online news website reported that the crash was caused by a "technical failure."
The crash of the Russian plane was due to a "technical failure" and was not shot down, Ayman Al-Mokadem who is heading a committee to monitor the event was quoted by Ahram as saying.
"The pilot sensed a technical failure and reported to the aviation authorities that he wanted to land at the nearest airport, " the report said.
However, the aviation ministry said it has not determined the reasons of the crash.
An aviation team is on their way to extract the black boxes and at least 45 ambulances have been sent to the site.
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