The helicopter crash occurred at 01:30 GMT near Melville Island, the broadcaster reported, adding that the incident may have killed people, as some personnel remain missing.
The military drills, which involve military from the United States, Australia, Indonesia, the Philippines and Timor-Leste, will be suspended due to the crash, the report stated.
A rescue operation is underway.
Australian Prime Minister Anthony Albanese called the incident a “tragic” one.
One person was in critical condition, two were stable and there were no reports of fatalities, the Australian Broadcasting Corporation (ABC) reported.
No Australian was involved in the drill.
[With UNI inputs]