The twin-propeller Sita Air plane had just taken off on Friday from Kathmandu and was headed to the town of Lukla, gateway to Mount Everest, when it plunged into the banks of a river near the city's airport around daybreak.

Student Wu Hui, 27, of California, was named among five Chinese dead in the crash, which also killed seven Britons, but Sita Air said his passport recovered at the crash site revealed he was an American of Chinese origin.

"One American citizen of Chinese origin was among the 12 foreigners who died in the Sita Air crash yesterday," Sita Air spokesman Deependra Shahi said.

"Seven Britons, four Chinese and seven Nepalis including three crews are the other deceased in the crash. The trekking agency is in touch with us and some relatives have arrived Kathmandu to collect the body of the deceased Britons.

"We are expecting to be in touch with (the) Chinese side too for the handover of the bodies."

Nepal said Saturday an error by a "panic-stricken" pilot was a likely cause of the Dornier 228 crashing.

"The pilot's failure to maintain the required radius is a likely cause of the accident," said senior ministry official Suresh Acharya, adding the plane turned too sharply because it had not gained enough altitude.