The plane crashed in a mountainous area in the Oum El Bouaghi province, the report added.
The C-130 Hercules aircraft, which was flying to the eastern city of Constantine crashed "in poor weather conditions" around 500 kilometres east of the capital, Algerian radio said.
The plane was carrying 99 passengers - soldiers and their families - as well as four crew members, the source told AFP.
"There were no survivors," the source added.
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